3-17 You are planning to withdraw $100 in Year 1, $150 in Year 3, and $200 in Year 5. At a 5% interest rate, what is the present worth of these withdrawals? Contributed by Gana Natarajan, Oregon State University 3-35 An R&D lab will receive $250,000 when a proposed contract is signed, a $200,000 progress payment at the end of Year 1, and $400,000 when the work is completed at the end of Year 2. What is the present worth of the contract at 15%?
3-17 You are planning to withdraw $100 in Year 1, $150 in Year 3, and $200 in Year 5. At a 5% interest rate, what is the present worth of these withdrawals? Contributed by Gana Natarajan, Oregon State University 3-35 An R&D lab will receive $250,000 when a proposed contract is signed, a $200,000 progress payment at the end of Year 1, and $400,000 when the work is completed at the end of Year 2. What is the present worth of the contract at 15%?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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3-17 and 3-35 show detail calculation and explanation
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