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Business, 12.02.2021 04:20 rosie20052019
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 $315,000 per year in years 1 through 5. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $160,000 per year for 4 more years. Determine the present worth of the two contracts at an interest rate of 12% per year.
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