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The four actors below have just signed a contract to star in a dramatic movie ab

ID: 2504974 • Letter: T

Question

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:

  

Assuming an annual discount rate of 10%, calculate the present value. Use Table 2. (Do not round PV factors. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Who is paid the most?

  

  

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 $500,000 2 years   Isabel   540,000 3 years   Meredith   450,000 Today   George   400,000 1 year    Required: a.

Assuming an annual discount rate of 10%, calculate the present value. Use Table 2. (Do not round PV factors. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

    Present Value   Derek $       Isabel $       Meredith $       George $         b.

Who is paid the most?

Isabel George Meredith Derek

  

  

Explanation / Answer

$    363636.36

Who is paid the most?

Meredith

the exact figure of george is 363636.36 .you may round it off as 363636

Present Value   Derek $    413223   Isabel $    405710   Meredith $ 450000   George

$    363636.36

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