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Oakville Trucking just signed a $5.0 million contract. The contract calls for a payment of $1.25 million today, $1.75 million
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Answer #1

ANSWER: $4,620,444.63

Year 0 1 2 Cashflow DF $1,250,000.00 1.000000 $ 1,750,000.00 0.932401 $ 2,000,000.00 0.869371 Net Present value DCF $1,250,00

DF = Discounting Factor

DCF = Discounted cash flow (Cashflow x Discounting factor)

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