Which contract should the young genius choose

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Problem 1: A young software genius is selling the rights to a new video game he has developed. Two companies have offered him contracts. The first contract offers 11,500 at the end of each year for the next five years, and then 19,000 dollars per year for the following 10 years. The second offers 10 payments, starting with 11,500 at the end of the first year, 14,500 dollars at the end of the second year, and so forth, increasing by G dollars each year (i.e., the tenth payment will be (11,500 dollars + 9 x G dollars). Assume the genius uses a MARR of 7%. Which contract should the young genius choose?

Reference no: EM132689683

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