Integrated network based on internet protocol communications

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Reference no: EM131001853

Bell Canada announced a four-year agreement worth about C$84 million to implement an integrated network based on Internet Protocol Communications and convert about 1,100 bank branches to an IP Virtual Private Network across Canada for the Bank of Montreal. Assume that 65 branches are to be converted each quarter of the four-year contract and the conversion of each branch is worth C$76,000 in revenue. If Bell Canada is paid at the end of the each quarter according to the number of branches converted, what is the present value (end of 2005) of the contract? Assume the contract begins in the first quarter of 2006 and runs through 2009 and the interest rate per year is 12% compounded quarterly.

Reference no: EM131001853

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