Answer:
Present value of the obligations $ 697,064
Cash contributions (annuity-due):
Annual payment $ 259,126.684
Explanation:
We solve for the PV of each annuity:
Tinkers
PV $205,553.5493
Evers:
PV $237,671.2914
we now discount for the deferred year:
Maturity $237,671.00
time 1.00
rate 0.12000
PV 212,206.2500
Chance
PV $269,789.0335
now, we deffer for the two year period
Maturity $269,783.00
time 2.00
rate 0.12000
PV 215,069.3559
<em><u>We add then:</u></em>
215,069 + 269,789 + 212,206.2500 = 697,064
The firm will make the first payment on Dec 31,2024 thus this will be an annuity due.
PV 697,064.00
time 3
rate 0.12
C $ 259,126.684