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Find what is the present value of the commitment

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Reference no: EM132569102

Question 1: When Marilyn Monroe died, her ex-husband, Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. · The week after she died in 1962, a bunch of fresh flowers cost $7.00. · "Joltin' Joe" is expected to live for 30 years after Marilyn's death · EAR: 9.4% expected as a market rate of return · Inflation of 3.5% per year (expressed as an EAR) · 52 weeks in a year What is the present value of this commitment given that the first purchase will occur one week after her death?

Reference no: EM132569102

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