Eddy money signed a three-year contract to host the tonight, Ask an Expert

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Eddy Money signed a three-year contract to host the Tonight Show. Although he will receive $130 million dollars over three years, the terms of the contract are that he is to receive $10 million at the end of each of the next three years plus an additional $100 million at the end of the third year. Assuming an annual interest rate of 10%, what is the actual value of Moneys contract in todays dollars? (Hint: Think of the contact as two separate calculations) $99,999,000 How do I get that answer? what are the steps?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9410000

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