What is the value to the sailing team

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Quick Stich is a contract sewing company that just received a contract to sew sails for a boating team in San Diego Ca. The team has agreed to pay $300,000 in one year another $500,000 4 years from today $50,000 7 years from today and finally $230,000 9 years from today. Quick Stich anticipates a $300,000 cost in 3 years and another $100,000 cost in 7 years associated with this contract. Find the current value of the contract to Quick Stich if the interest rate is 8.3%. What is the value to the sailing team?

Reference no: EM132645029

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