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%?

$64,474.20

Explanation:

As for the information provided,

discount rate = 7.25%

First payment will be made at the end of year 1

Discounting factor =

Thus, current value of payment = = $26,107.20

Discounting factor for receipts =

Year 1 = = $28,000 0.9324 = 26,107.20

Year 2 =

Year 3 =

Therefore, value of contract today = - $26,107.20 + $26,107.20 + $30,429.0 + $34,045.20 = $64,474.20

reducing the scale of the market for a new product.

answer founder's agreement;