Global enterprises has just signed a $3 million contract. the contract calls for a payment of $0.5 million today, $0.9 million one year from today, and $1.6 million two years from today. what is this contract really worth today if global enterprises can earn 12 percent on its money?

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18-05-2022
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Global enterprises has just signed a $3 million contract. the contract calls for a payment of $0.5 million today, $0.9 million one year from today, and $1.6 million two years from today. what is this contract really worth today if global enterprises can earn 12 percent on its money?

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jainveenamrata jainveenamrata · Answer 1 · 2022-05-26T09:13:14+02:00

The contract really worth today if global enterprises can earn 12 percent on its money will be 2.58 million.

What is a contract signing?

The participants that sign the agreement agree to the statement's provisions as well as their commercial duties.

Global enterprises have just signed a $3 million contract.

The contract calls for a payment of $0.5 million today, $0.9 million one year from today, and $1.6 million two years from today.

Then the contract really worth today if global enterprises can earn 12 percent on its money will be

Contract really worth today = 0.5m + (0.9m/1.12) + (1.6m/1.12²)

Contract really worth today = $2.579 million

Contract really worth today ≅ 2.58 million

More about the contract signing link is given below.

https://brainly.com/question/6176000

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