(Present value of a complex stream)Don Draper has signed a contract that will pay him

$55,000

at the end of each year for the next

8

years, plus an additional

$120,000

at the end of year

8.

If

11

percent is the appropriate discount rate, what is the present value of this contract?

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Part 1

The present value of the contract is

$enter your response here.

(Round to the nearest cent.)