Question: WaterTest has developed a new detection method that allows for water contaminants to be quickly identified. A major manufacturer is offering a contract to buy

WaterTest has developed a new detection method

WaterTest has developed a new detection method that allows for water contaminants to be quickly identified. A major manufacturer is offering a contract to buy the technology, but the catch is that they want it implemented in a handheld detector. Water Test estimates that the cost of development and testing will be $50,000 up front. The manufacturer is offering $10,000 for the next five years and then $20,000 for the next 10 years. WaterTest's MARR is 9% per year. What is the Present Worth of the Contract? O a. $83,421 O b. $117,250 O c. $122,317 O d. $72,317 Based on your analysis, What should Water Test decide? O a. Since PW O implies that the contract should be rejected O d. Since PW > 0, WaterTest should take the contract

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