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Category > Accounting Posted 05 Jun 2017 My Price 3.00

You are the financial advisor for a musician who is in the process of negotiating

You are the financial advisor for a musician who is in the process of negotiating a recording contract.The company is offering him two possible contracts.With each contract the first payment is made upon receipt (year 0).If the musician discounts cash flows at 4%, which of the two contracts below has the highest net present value?

Contract 1 Contract 2

Year 0(today) $2.0million $2.5million

Year 1 1.5million 1.5million

Year 2 1.5million 1.0million

Year 3 1.5million 1.0million

NPV ________ ________

Answers

(8)
Status NEW Posted 05 Jun 2017 04:06 PM My Price 3.00

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file 1496679390-Answer.docx preview (114 words )
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