Moonlight Industries Just Signed a Sales Contract with a New

question 116

Multiple Choice

Moonlight Industries just signed a sales contract with a new customer.JK will receive annual payments in the amount of $50,000, $96,000, $123,000, and $138,000 at the end of Years 1 to 4, respectively.What is this contract worth at the end of Year 4 if the firm earns 3.75 percent on its savings?

• A)$ 443,571.88
• B)$ 348,457.72
• C)$ 431,417.66
• D)$ 412,264.53
• E)$ 424,786.07

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Definitions:

Net Increase

The amount by which a company's or individual's assets exceed their losses or liabilities over a given period.