Question
PLEASE HELP ME S. Ken Flint retired as president of Colour Tile Company, but he is currently on a consulting contract for $51,000 per year
PLEASE HELP ME S. Ken Flint retired as president of Colour Tile Company, but he is currently on a consulting contract for $51,000 per year for 10 years. (Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.) a. If Mr. Flint's opportunity cost (potential return) is 8 percent, what is the present value of his consulting contract? Present value $ b. Assuming Mr. Flint will not retire for two more years and will not start to receive his 10 payments until the end of the third y would be the value of his deferred annuity? Present value $ c. Recalculate part a assuming the contract stipulates that payments are to be made at the beginning of each year. Present value $
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