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The Texas Longhorn football program is being sponsored by Farmers Bank & Trust. The contract pays $1.5 millions a year for 15 years, starting at
The Texas Longhorn football program is being sponsored by Farmers Bank & Trust. The contract pays $1.5 millions a year for 15 years, starting at the end of this year (first payment is one year from inception). It is reported to be worth $22.5 million. At an 8% discount rate, how much is it realy worth at inception?"
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