A design-build-operate engineering company in Teaxas that owns a sizable amount of land plans to lease the drilling rights to a mining company. The contract calls for the mining company to pay $20,000 per year for 20 years beginning 3 years from now (i.e. beginning at the end of year 3 and continuing through year 22) plus $10,000 six years from now and $15,000 sixteen years from now. Using Excel (NPV, FV, and PMT functions) and 16% per year calculate the following:
The present worth in year 0.
The future worth in year 22.
The annual worth over 22 years.
In your posting report your findings and attach the Excel spreadsheet.