Question

Toyco Watercraft has a contract with a parts supplier that involves purchases amounting to $150,000 per year, with the first purchase to be made now, followed by similar purchases over the next 5 years. Determine the present worth of the contract at an interest rate of 10% per year.

Answer 1

The present worth of the contract at an interest rate of 10% per year is $718,620.

Step-by-step explanation:

Solution attached below