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A video game programmer is selling the rights of a new video game he has developed. Three companies have offered him contracts. All 3 contracts
A video game programmer is selling the rights of a new video game he has developed. Three companies have offered him contracts. All 3 contracts offer for the term of 15 years. 1. The first contract offers payments of $50,000 at the end of each year for the next 15 years. 2. The second contract offers $40,000 at the end of each year for 10 years, and then $70,000 per year for the following 5 years. 3. The third contract offers 15 payments, starting with $20,000 at the end of the first year, $25,000 at the end of the second, and so forth, increasing by $5,000 each year, i.e., the last payment (at the end of year 15) will be $20,000 +(14$5,000)). Assume the programmer uses a MARR of 10\%. Based on the Present Worth, which of the following order is true? PW(Contract-1) > PW(Contract-2) > PW(Contract-3) PW(Contract-1) > PW(Contract-3) > PW(Contract-2) PW(Contract-2) > PW(Contract-3) > PW(Contract-1) PW(Contract-3) > PW(Contract-1) > PW(Contract-2) PW(Contract-3) > PW(Contract-2) > PW(Contract-1)
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