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The Ottawa Senators Fired Their Coach Two Years into His

Question 105

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The Ottawa Senators fired their coach two years into his five-year contract, which paid him $90,000 at the end of each month. If the team owners buy out the remaining term of the coach's contract for its economic value at the time of firing, what will be the settlement amount? Use 7.5% compounded monthly as the time value of money.

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