Two contract offers are made to you. The first contract offers $10,000 at the end of each year for the next next five years and then $20,000 per year…
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Two contract offers are made to you. The first contract offers $10,000 at the end of each year for the next next five years and then $20,000 per year for the following 10 years. The second offer pays 10 payments, starting with $10,000 at the end of the first year, $13,000 at the end of the second, and so forth, increasing by $3000 each year. If you use a MARR of 10%, which contract should you choose? Use present worth comparisons. Thank you.
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