Industrial Electric Services has a contract with an Embassy in Mexico to provide maintenance for scanners and other devices in the building. What is the present worth of the contract (in year 0) if the company will receive a total of nine $12,000 payments beginning in year 2 and ending in year 10 and the interest rate is 10% per year.
Industrial Electric Services has a contract with an Embassy in Mexico to provide maintenance for scanners and other devices in the building. What is the present worth of the contract (in year 0) if the company will receive a total of nine $12,000 payments beginning in year 2 and ending in year 10 and the interest rate is 10% per year.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Industrial Electric Services has a contract with an
Embassy in Mexico to provide maintenance for
scanners and other devices in the building. What is
the present worth of the contract (in year 0) if the
company will receive a total of nine $12,000 payments
beginning in year 2 and ending in year 10
and the interest rate is 10% per year.
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