Question
A construction firm has a contract that has $10,000 due today, January 1, and then requires a payment of $5,000 at the end of the
A construction firm has a contract that has $10,000 due today, January 1, and then requires a payment of $5,000 at the end of the year and $15,000 at the end of the second year. Assuming that all funds can be invested to earn a return of 6%, how much will the contract be worth at the end of the second year?
- $30,000
- $31,236
- $31,536
- $33,483
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For Mowen/hansen/heitgers Cornerstones Of Managerial Accounting, 6th Edition, [instant Access]
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
6th Edition
1305280768, 9781305280762
