Question: A small manufacturing company is considering purchasing a maintenance contract for its air conditioning systems. Since all of its systems are hew, the company plans

A small manufacturing company is considering purchasing a maintenance contract for its air conditioning systems. Since all of its systems are hew, the company plans to begin the contract in year four and continue through year ten. The cost of the contract is $

5000

per year and the company's minimum attractive rate of return is

15 %

per year. The present worth of the contract is nearest to:

A small manufacturing company is considering purchasing a maintenance contract for

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