Compute the aw in actual dollars from year one to seven

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Reference no: EM131958181

Jack and Jill have a 7 year consulting contract with an engineering company.

For the first three years of the contract, the company guarantees them $150,000 in constant dollars per year. For the remaining four years of the contract, the company will pay them $150,000 in actual 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 AW in actual dollars from year 1 to 7.

Reference no: EM131958181

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