Actual value of money contract in today dollars


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 Money's contract in today's dollars?

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Accounting Basics: Actual value of money contract in today dollars
Reference No:- TGS048856

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