Question
our dream is to take up a job that basically provides wages that has a present value of at least $2,000,000 today (Ignoring taxes). Other
our dream is to take up a job that basically provides wages that has a present value of at least $2,000,000 today (Ignoring taxes). Other words, you want the present value of all net future earning to be greater than 2 million. You want to feel like a millionaire today! You just completed your master of science in biochemistry and a large bio-medical company wants to hire you. Their offer is as follows: Annual salary of $200,000 starting one year from today. However, they will only offer a contract for twenty years, and they will not guarantee if they can renew your contract. Also, they want you to complete an MBA in your second year and third year while working with them (t=2 and t=3). You must pay for that education (they do not cover education expenses). However, since your first annual paycheck is one year from today (t=1), they are willing to give a contract signing bonus of $100,000 today (if you sign the contract today). You did some research and realized that you can complete your MBA with Sam Houston State University with a cost of $15,000 per year for two years. You also assume a conservative interest rate of 4% for this calculation. What is the NPV of these cash flows. (Note: 1.5X credit)
$2,590,861.98 | ||
$2,790,861.98 | ||
$2,818,065.27 | ||
$2,788,065.27 | ||
$3,970,000.00
|
help me please!!!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started