16) You have a sub-contracting job with a local manufacturing firm. Your agreement calls for...
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16) You have a sub-contracting job with a local manufacturing firm. Your agreement calls for annual payments of $50,000 for the next five years. At a discount rate of 12%, what is this job worth to you today? 17) As an excellent student in environmental ecology, you have been awarded the "Clean Effluent Prize" by a state agency. You (or your estate) could receive $300 forever from the state or $400 for the next 25 years. Payments are to be received annually. If the market rate of interest is 6%, what is the value of the two options respectively
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