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Stephanies Steamers has entered a 11-year contract with a regional bank to clean the carpets at every bank branch at least once per year. The
Stephanies Steamers has entered a 11-year contract with a regional bank to clean the carpets at every bank branch at least once per year. The first year of the contract, Stephanie cleaned 36,000 sq. ft. of carpet for a total cash flow of $30,000. The bank expects that they will add branches each year, effectively increasing the square footage of carpet by 6% per year. Stephanie's MARR is 10%. What is the present worth of this contract?
a. $124,751.64
b. $199,602.62
c. $332,671.03
d. $250,993.45
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