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 6.000. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $200,000 per year for 4.00 more years. Determine the present worth of the two contracts at an interest rate of 12.00% 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 6.000. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $200,000 per year for 4.00 more years. Determine the present worth of the two contracts at an interest rate of 12.00% per year. (Round the final answer to three decimal places.) The present worth of the two contracts is determined to be $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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