Ashnovella
New member
Bridget Jones has a contract in which she will receive the following payments for the next five years: $1000, $2000, $3000, $4000 and $5000. She will then receive an annuity of $8,500 a year from the end of the 6th through the end of the 15th year. The appropriate discount rate is 14 percent. If she is offered $30,000 to cancel the contract, should she do it?