Question
Please use Excel Nick has received a job offer from NASCAR Inc. His base salary will be $65,000. He will receive his first annual salary
Please use Excel
Nick has received a job offer from NASCAR Inc. His base salary will be $65,000. He will receive his first annual salary payment one year from the day he begins to work. In addition, he will get an immediate $20,000 bonus for joining the company. His salary will grow at a rate of 4% each year. Each year, he will receive a bonus equal to 8% of his salary. Nick is expected to work for 25 years. When Nick retires after 25 years, he gets an additional amount equal to the sum of his last two years base salaries. What is the present value of the offer if the discount rate is 9 %?
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