Les moore retired as president of goodman snack foods, Ask an Expert

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Les Moore retired as president of Goodman Snack Foods Company but is currently on a consulting contract for $63,000 per year for the next 10 years.

a. If Mr. Moore’s opportunity cost (potential return) is 10 percent, what is the present value of his consulting contract? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

b. Assuming Mr. Moore will not retire for two more years and will not start to receive his 10 payments until the end of the third year, what would be the value of his deferred annuity? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92319617

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