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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: Derek Isabel Meredith George Contract Teres Contract Payment Amount Date 5600,000 2 years 640,000 3 years 500,000 Today 500,000 1 year Required: 1-a. Assuming an annual discount rate of 9%, calculate the present value of the contract amount (EV 1. PV of $1. EVA of $1 and PVA of $1) (Use appropriate foctor(s) from the tables provided. Round your answers to 2 decimal places.) Present Value Derek Isabel Meredith George 1-b. Which of the four actors is actually being paid the most? O Derek Isabel O Meredith O George Neyt
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