Lester's Just Signed a Contract That Will Provide the Firm

question 19

Multiple Choice

Lester's just signed a contract that will provide the firm with annual cash inflows of $28,000,$35,000,and $42,000 over the next three years with the first payment of $28,000 occurring one year from today.What is this contract worth today at a discount rate of 7.25%?

• A) $88,311.08
• B) $89,423.91
• C) $90,580.55
• D) $91,341.41

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Definitions:

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