An engineer has been offered an investment opportunity that will require an immediate cash outlay of $40, 000 for a cash inflow of $3500 for each year of investment. However, she must state now the number of years she plans to retain the investment. Additionally, if the investment is retained for 6 years, a lump - sum amount of $42, 000 will be returned to her; after 10 years, the lump - sum return is anticipated to be $49,500, and after 15 years, it is estimated to be $56,000. Money is currently worth 12% per year. Determine the present worth values for 6 years, 10 years, and 15 years, and decide if the decision is sensitive to the retention period?
a.The present worth when the investment is retained for 6 years is S
b. The present worth when the investment is retained for 10 years is S
c. The present worth when the investment is retained for 15 years is S