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What will the company be willing to pay for the contract

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Problem 1: Indigo Company is offered a contract whereby it will be paid $10,000 every six months for the next five years. The first payment will be received six months from today. What will the company be willing to pay for this contract if it expects a 16% annual return on the investment?

a) $ 49,114.50
b) $ 72,498.00
c) $ 67,101,00
d) $ 98,229.00
e) $ 59,890.50

Reference no: EM132734275

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