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b) You have just signed a five-months contract for Shs.200.000 per month as salary i)...

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b) You have just signed a five-months contract for Shs.200.000 per month as salary i) Assuming an opportunity cost rate of 12%, calculate the present value of your contract. (3 Marks) ii) Suppose that your contract requires a salary of Shs.200.000 in each of the first three months and Shs.400.000 in the latter two months, what would be the present value of your contract? (4 Marks)

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