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Business, 20.06.2020 18:57 toxsicity

The Dutch engineering firm Technip SA is building a submersible offshore oil production platform for Petrobras, a Brazilian oil company. The contract, signed in December of 2003, is valued at $534,152,864. Assume that time zero is at the end of 2003 and the rig will take two years to manufacture. If the interest rate is 3% per quarter (every 3 months), and the full price is paid at time zero, what is the rig worth at the time of delivery?

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