Basics of Engineering Economy 1st Edition by Leland Blank,Anthony Tarquin

Exercise 6

GE Marine Systems is planning to supply a Japanese shipbuilder with aero-derivative gas turbines to power 11 DD-class destroyers for the Japanese Self-Defense Force.The buyer can pay the total contract price of $,100,000 two years from now (when the turbines will be needed) or an equivalent amount now.At an interest rate of 15% per year, what is the equivalent amount now?