Question: 6. 2.68 Determine the difference in the present worth values of the following two commodity contracts at an interest rate of 8% per year. 1.

6. 2.68 Determine the difference in the present worth values of the following two commodity contracts at an interest rate of 8% per year.

1. Contract 1: costs $10,000 in year 1; costs will escalate at a rate of 4% per year for 10 years.
2. Contract 2: same cost in year 1, but costs will escalate at 6% per year for 11 years.

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