What is the present value of her inheritance of the ship

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Reference no: EM131044675

Mac has bequeathed his spaceship Serenity to his second in command, Zoe, upon his death. Zoe knows that Mac's weekly hairbreadth escapes from mortal danger cannot continue forever, and she estimates he has six years to live. Given that Serenity is now worth $120,000, what is the present value of her inheritance of the ship? Zoe has a discount rate of 28%.

Reference no: EM131044675

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