A law firm is considering the dismissal of one of its junior lawyers. The law firm presently has enough space for more lawyers and a growing legal practice but considers this junior lawyer to be a net loss to the firm. To dismiss him, the firm would have to pay \($100,000\) to sever his employee contract early. The lawyer has a salary of \($80,000\) and currently brings in \($200,000\) per year in revenues. The law firm, however, estimates that indirect costs related to the lawyer are \($180,000\) per year. The alternative is to wait two more years, in order to dismiss him at the end of his contract and not have to pay any severance costs. The discount rate is 10 percent.

What should the law firm do?