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Problem #2: A young software genius is selling the rights to a new video game he has developed. Two companies have offered him contracts. The
Problem #2: A young software genius is selling the rights to a new video game he has developed. Two companies have offered him contracts. The first contract offers $10,000 at the end of each year for the first five years, and then $20,000 per year for the following 10 years. The second offers 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 $3,000 each year (i.e., the tenth payment will be $10,000+(9$3,000). Assume the genius uses a MARR of 9 percent. Which contract should he choose? Use a present worth comparison
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