Problem 9-24 Present value [LO9-3] Les Moore retired as president of Goodman Snack Foods Company but is currently on a c

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Problem 9-24 Present value [LO9-3]
Les Moore retired as president of Goodman Snack Foods Company
but is currently on a consulting contract for $59,000 per year for
the next 12 years. Use Appendix B and Appendix
D for an approximate answer, but calculate your final answer
using the formula and financial calculator methods.

a. If Mr. Moore’s opportunity cost (potential
return) is 11 percent, what is the present value of his consulting
contract? (Do not round intermediate calculations.
Round your final answer to 2 decimal places.)
b. Assuming Mr. Moore will not retire for
two more years and will not start to receive his 12 payments until
the end of the third year, what would be the value of his deferred
annuity? (Do not round intermediate calculations.
Round your final answer to 2 decimal