Question: A small firm is considering purchasing a maintenance contract for its heating and air conditioning systems. Since all of its systems are new, the firm

A small firm is considering purchasing a maintenance contract for its heating and air conditioning systems. Since all of its systems are new, the firm plans to begin the contract in year four and continue through year ten. The cost of the contract is $3,200 per year. The firms minimum attractive rate of return is 12% per year. What is the future worth of this contract?

Given the present worth is $10394.95

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