PV = (1 + r)t An agency is evaluating 3 firm-fixed-price price proposals from prospective contractors remaining in the competitive range. There are 5 Contracting Periods (CP) CP1 = Base Year CP 2 = Option Period 1 CP 3 = Option Period 2 CP 4 = Option Period 3 CP 5 = Option Period 4 Offeror Base Period Option Period Option Period Option Period Option Period Total 0 1 2 3 4 A $765,000 $780,300 $795,906 $827,742 $860,852 B $742,500 $772,200 $803,088 $835,212 $876,975 C $787,500 $803,250 $819,315 $835,701 $852,414 The government's cost and pricing analyst is reviewing the pricing to ascertain 3 things: (a) the lowest overall price including option periods and (b) the annual escalation rate for each option period