(Present value of a complex stream) Don Draper has signed a contract that will pay him $40,000 at the beginning of each year for the next 8 years, plus an additional $120,000 at the end of year 8. If 12 percent is the appropriate discount rate, what is the present value of this contract? a. What is the present value of $40,000 at the beginning of each year for the next 8 years if the discount rate is 12 percent? (Round to the nearest cent.)