QUESTION 6 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 $80,000 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 + (14x$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) QUESTION 7 Datum PCB Manufacturing Co. is considering the purchase of a new plasma etching machine for its production process. There are two models being considered. PL-1000W La TEC-2000W First Cost of $40,000. Life: 5 years, zero salvage value at the end of the 5-th year. Annual Expense (maintenance, electricity, etc.): $2,500. First Cost of $60,000. Life: 9 years, zero salvage value at the end of the 9-th year. Annual Expense (maintenance, electricity, etc.): $3,000 Datum Co. is using a 5-year study period approach for comparing these two models. At the end of the 5-year study period, what salvage value for the extra 4 years of life for La TEC-2000W would result in that both models are equivalent in Present Worth? Assume Datum's MARR is at 8%. $29,583.0 $32,320.0 $28,288.3 $35,262.8