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Question - A famous quarterback just signed a $10.8 million contract providing $2.7 million a year for 4 years. A less famous receiver signed a $7.0 million 4-year contract providing $3 million now and $2.2 million a year for 4 years. The interest rate is 8%.
Required -
a. What is the PV of the quarterback's contract?
b. What is the PV of the receiver's contract?
Find Total May sales are anticipated to be? The desired ending inventory of units is 20% higher than the beginning inventory of 1,000 units.
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