Question 5.13: A construction firm has just won a contract for $2.25 millio...

Engineering Economic Analysis

A construction firm has just won a contract for $2.25 million. If work is completed on schedule, it will receive a series of progress payments. The first $100,000 will be received 15 days after the contract is signed. Further payments of $450,000 each will be received at 45 and 180 days. The remaining $1.25 million will be received 390 days after the contract is signed. If the firm’s interest rate is 9.5%, what is the present worth of the progress payments on the contract signing date of September 23, 2019?

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