Arcon and Byrnco have both submitted bids for an equipment service contract.  Their offers are:

Arcon:

• $9,500 to be paid immediately
• $5,000 to be paid one year from now
• $5,000 to be paid two years from now

Byrnco:

• $10,500 to be paid one year from now
• $10,500 to be paid two years from now

Part A: If money is worth 6 % compounded semi-annually, what is the value of Arcon company's bid in today's dollars? 

Answer rating: 100% (QA)

To find the present value of Arcon companys bid in todays dollars we need to discount each future pa... View the full answer