Question
Beginning of year 1 (or today): hire the first developer and immediately pay $61,000 as a lump sum for the first year of work. Beginning
Beginning of year 1 (or today): hire the first developer and immediately pay $61,000 as a lump sum for the first year of work.
Beginning of year 2 (or 1 year from today): hire the second developer and immediately pay $68,000 as a lump sum for the first year of work.
Beginning of year 3 (or 2 years from today): hire the third developer and immediately pay $76,000 as a lump sum for the first year of work.
The company is planning for generous salary increases at the annual rate of 3%. How much TOTAL salary will the company have to pay to all three hired employees 6 years from today?
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Valuation, Measuring And Managing The Value Of Companies
Authors: Tim Koller, Marc Goedhart, David Wessels
7th Edition
1119611865, 9781119611868
