Which of the following scenarios would result in a decrease in the wage rate of solar panel installers and a decrease in the qua
ntity of solar panel installers employed in Billy's town? An increase in the demand for solar panels raises the price of each installation A. decrease in people's income decreases the demand for solar panels A solar panel company shuts down in another town and solar panel installers try to find jobs in Billy's town. Wages of solar panel installers increase in another town and attract workers away from Billy's town.
1 answer:
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Answer:
$64,474.20
Explanation:
As for the information provided,
discount rate = 7.25%
First payment will be made at the end of year 1
Discounting factor =
Thus, current value of payment = = $26,107.20
Discounting factor for receipts =
Year 1 = = $28,000
0.9324 = 26,107.20
Year 2 =
Year 3 =
Therefore, value of contract today = - $26,107.20 + $26,107.20 + $30,429.0 + $34,045.20 = $64,474.20