P2 EconomicsPlease answer and show all steps:A construction company is engaged in a three-year renovation project. Contract payments are made on the last day ofeach year based on the progress made during the year. The amount of the annual payment includes the amount due formaterial costs and manpower as listed in the table below. Note that the first payment is due at the end of next year, sotime zero is at the end of this year, 31 Dec 2022.31 Dec 2023$100,00031 Dec 2024$200,00031 Dec 2025$140,000Material Costs in ConstantDollars (Real)Manpower Costs in Current$90,000$110,000$130,000Dollars (Actual)Your company uses a current/actual MARR of 12% for construction projects of this type. The inflation rate is anticipatedto be a consistent 4% per year for all three years.A. What is the amount of the 3rd payment (including material and manpower) due to the company on 31 December2025, in current/actual dollars?B.What is the amount of the 2nd payment (including material and manpower) due to the company on 31December 2024, in constant/real 2023 dollars?C. What is the constant/real MARR?D. What will the Present Worth of the payments be at the end of this year?

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Please answer and show all steps: A construction company is engaged in a three-year renovation project. Contract payments are made on the last day of each year based on the progress made during the year. The amount of the annual payment includes the amount due for material costs and manpower as listed in the table below. Note that the first payment is due at the end of next year, so time zero is at the end of this year, 31 Dec 2022.

Please answer and show all steps: A construction company is engaged in a three-year renovation project. Contract payments are made on the last day of each year based on the progress made during the year. The amount of the annual payment includes the amount due for material costs and manpower as listed in the table below. Note that the first payment is due at the end of next year, so time zero is at the end of this year, 31 Dec 2022.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....

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