Determine the difference in the present worth values of the following two commodity contracts at an interest
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Contract 1 has a cost of $10,000 in year 1; costs will escalate at a rate of 4% per year for 10 years.
Contract 2 has the same cost in year 1, but costs will escalate at 6% per year for 11 years.
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Initial Cost C 0 10000 Interest rate i 8 008 Contract 1 Growth rate o...View the full answer
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