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Which contract should you choose

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Reference no: EM132146940

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.

Reference no: EM132146940

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