You work in contract management for a shipping company. A client has just signed a four-year contract with you to ship their goods from Florida to South Africa. The terms of the contract stipulate that the client will pay $300,000 up front, $200,000 at the end of year 1, $150,000 at the end of year two, $200,000 at the end of year 3, and $350,000 at the end of year 4 when the contract is over. There is a 4.5% discount rate and you are curious what the total PV is of these payments. Which of the following timelines, best represents this situation? 2 3 0.45 0.45 0.45 0.45 A ($300K) ($200k) (150k) ($200k) ($350k) PVE? 2 3 3 J 4,57 4,5% 951. 45% B $300k $200k $150k $200k PV=? u 5 2 4,5% 3 457, 4,51 4,5% 4,5% =? PV:? $300k $200k $150k 4200k $250k 2 3 u 4.57 4,5% 95'l 4.5% 4.5% PV:? $300k) (-2006) (sok) (*2008) (5350k) = 2 1 3 3 u 4,51 4,5% 95'l, 4.5% E ($300k) (2008) (tisok) (4200k) (250k) $ PV=? 2 3 3 y . 5 0.45 0.45 0.45 0.45 0.45 F =? PV:? $300k $200k $150k $200k $350k