Instructions

Make decisions that are best for your company. You use 10% to evaluate things unless told or it makes more sense to use a different value. (Put your answer in this format: if its over $1M: 1,000,001. If its over $100,000 then 100,001. Etc. E.g., if your answer is $2,345,466.43 then you put "2,345,466" - no $ or decimals, e.g., $754,231.12 then you would enter 754,231.)

You have four employees whose combined salaries through the end of this year are $250K. Since they signed The Dip to an album contract, you expect to give them an average raise of 5% each year. What is the present worth of the employees' salaries over the next 5 years (years 1-5)? You use 12% per year for evaluation when referencing the account for salaries and wages.