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Doris's Fashions Has Just Signed a $2

Question 22

Multiple Choice

Doris's Fashions has just signed a $2.2 million contract.The contract calls for a payment of $0.6 million today,$0.8 million one year from today,and $0.8 million two years from today.What is this contract worth today if the firm can earn 8.2 percent on its money?


A) $2,038,616.67
B) $2,022,709.37
C) $2,108,001.32
D) $2,124,339.07
E) $2,202,840.91

Correct Answer:

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