Question

Carrie Tune will receive $18,250 a year for the next 19 years as payment for a song she has just written. If a present 8 percent discount rate is applied: Use Appendix D. (Round "PV Factor" to 3 decimal places. Round the final answers to the nearest whole dollar.)

a-1. Calculate the present value.

Present value            $

a-2. Should she be willing to sell out her future rights now for $161,000?

• No

• Yes

b-1. Calculate the present value if the payments will be made at the beginning of each year.(please explain to me how to calculate this part and how you get the rate because I'm confused)

Present value            $

b-2. Would she be willing to sell her future rights now for $161,000, if the payments will be made at the beginning of each year?

• Yes

• No

Answer 1