Jack and Jill have a 6 year consulting contract with an engineering company. For the...
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Accounting
Jack and Jill have a 6 year consulting contract with an engineering company. For the first three years of the contract, the company guarantees them $80.000 in actual dollars plus $80,000 in real dollars per year. For the remaining three years of the contract, the company will pay them $150,000 in constant dollars. They estimate that the inflation rate will be 6% per year during the duration of the contract and they will consider a real MARR of 8%. Please compute the amount A in actual dollars from year 1 to 6 equivalent to the payments
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