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 $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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