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Civil engineering consulting firms that provide services to outlying communities are vulnerable to a number of factors that affect the financial condition of the communities, such as bond issues, real estate developments, etc. A small consulting firm entered into a fixed-price contract with a spec home builder, resulting in a stable income of $330,000 per year in years 1 through 8.000. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $160,000 per year for 2.00 more years. Determine the present worth of the two contracts at an interest rate of 15.00% per year. (Round the final answer to three decimal places.) The present worth of the two contracts is determined to be $

Civil engineering consulting firms that provide services to outlying communities are vulnerable to a number of factors that affect the financial condition of the communities, such as bond issues, real estate developments, etc. A small consulting firm entered into a fixed-price contract with a spec home builder, resulting in a stable income of $330,000 per year in years 1 through 8.000. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $160,000 per year for 2.00 more years. Determine the present worth of the two contracts at an interest rate of 15.00% per year. (Round the final answer to three decimal places.) The present worth of the two contracts is determined to be $

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
Problem 2.2CE
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Civil engineering consulting firms that provide services to outlying communities are vulnerable to a number of factors that affect the financial condition of the communities, such as bond issues, real estate developments, etc. A small consulting firm entered into a fixed-price contract with a spec home builder, resulting in a stable income of $330,000 per year in years 1 through 8.000. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $160,000 per year for 2.00 more years. Determine the present worth of the two contracts at an interest rate of 15.00% per year. (Round the final answer to three decimal places.) The present worth of the two contracts is determined to be $
Transcribed Image Text:Civil engineering consulting firms that provide services to outlying communities are vulnerable to a number of factors that affect the financial condition of the communities, such as bond issues, real estate developments, etc. A small consulting firm entered into a fixed-price contract with a spec home builder, resulting in a stable income of $330,000 per year in years 1 through 8.000. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $160,000 per year for 2.00 more years. Determine the present worth of the two contracts at an interest rate of 15.00% per year. (Round the final answer to three decimal places.) The present worth of the two contracts is determined to be $
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