A young software genius is selling the rights to a new video game he has developed. Two companies have offered him contracts. The first contract offers 8,000 at the end of each year for the next five years, and then 18,500 dollars per year for the following 10 years. The second offers 10 payments, starting with 9,500 at the end of the first year, 12,500 dollars at the end of the second year, and sof forth, increasing by G dollars each year (i.e., the tenth payment will be (9,500 dollars +9 x G dollars). Assume the genius uses a MARR of 9%. Which contract should the young genius choose? Use a present worth comparison and least common multiple of repeated lives (Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}. For one life of project one, the present worth is: Number For repeated lives of project one, the present worth is: Number For one life of project two the present worth is: Number For repeated lives of project two, the present worth is: DOD Number

A young software genius is selling the rights to a new video game he has developed. Two companies have offered him contracts. The first contract offers 8,000 at the end of each year for the next five years, and then 18,500 dollars per year for the following 10 years. The second offers 10 payments, starting with 9,500 at the end of the first year, 12,500 dollars at the end of the second year, and sof forth, increasing by G dollars each year (i.e., the tenth payment will be (9,500 dollars +9 x G dollars). Assume the genius uses a MARR of 9%. Which contract should the young genius choose? Use a present worth comparison and least common multiple of repeated lives (Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}. For one life of project one, the present worth is: Number For repeated lives of project one, the present worth is: Number For one life of project two the present worth is: Number For repeated lives of project two, the present worth is: DOD Number

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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