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The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts

The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Contract Terms Contract Amount Payment Date Derek $550,000 2 years Isabel 590,000 3 years Meredith 475,000 Today George 450,000 1 year Required: 1-a. Assuming an annual discount rate of 8%, calculate the present value of the contract amount. 1-b. Which of the four actors is actually being paid the most?

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