sub-contracting.. help needed.

[tultul_gis]

You have a sub-contracting job with a local manufacturing firm. Your agreement calls for annual
payments of $82,000 for the next 3 years. At a discount rate of 9.5 percent, what is this job worth to you
today?

 

[tkhunny]

You must have somewhere to start.

In this case, it is not clear WHEN the $82,000 applies. Immediately or one year from now.

d = 0.095
v = 1-d

Immediately

82000*(1 + v + v^2)

One year from now

82000*(v + v^2 + v^3)