A company pays $19,000 per year to one of your competitors for consulting. You can provide the same service for the next 6 years but would incur costs of $30,000 today plus $11,000 per year. Can you offer this service for less than $19,000 per year if you want to earn a rate of 9 percent return from this service?

Answer rating: 100% (QA)

Step 1 We would offer this service for less than 19000 per y... View the full answer