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Please answer the following, thanks. I'll give a thumb up once completed Question 23, Bookmatch 5-61 (book/static) Question Help 0 (Present value of a complex

image text in transcribedimage text in transcribedPlease answer the following, thanks. I'll give a thumb up once completed

Question 23, Bookmatch 5-61 (book/static) Question Help 0 (Present value of a complex stream) Don Draper has signed a contract that will pay him $80,000 at the beginning of each year for the next 6 years, plus an additional $100,000 at the end of year 6. If 8 percent is the appropriate discount rate, what is the present value of this contract? a. What is the present value of $80,000 at the beginning of each year for the next 6 years if the discount rate is 8 percent? $ 399,416.80 (Round to the nearest cent.) b. What is the present value of $100,000 at the end of year 6 if the discount rate is 8 percent? (Round to the nearest cent.) Question 7, Bookmatch 5-12 (book/static) Question Help (Present-value comparison) You are offered $1,000 today, $10,000 in 12 years, or $25,000 in 25 years. Assuming that you can earn 11 percent on your money, which offer should you choose? a. What is the present value of $25,000 in 25 years discounted at 11 percent interest rate? $ 1,840.20 (Round to the nearest cent.) b. What is the present value of $10,000 in 12 years discounted at 11 percent interest rate? (Round to the nearest cent.)

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