Aug 19, 2017

What is the present worth of the contract at 10% per year, interest, if the annual cost in years 1 through 5 is $8 million per year?

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Irvin Aerospace of Santa Ana, California, was awarded a 5-year contract to develop an advanced space capsule airbag landing attenuation system for NASA’s Langley Research Center. The company’s computer system uses fluid structure interaction modeling to test and analyze each airbag design concept. What is the present worth of the

contract at 10% per year, interest, if the annual cost in years 1 through 5 is $8 million per year?


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