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Sherwin Williams will receive $21,250 a year for the next 16 years as a result of a picture he has painted. Use Appendix D for
Sherwin Williams will receive $21,250 a year for the next 16 years as a result of a picture he has painted. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. What is the present value of these payments if the discount rate is 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value b. Should he be willing to sell out his future rights now for $176,000? O Yes O No
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