Question
Roger is a finish carpenter who is in high demand because of the outstanding quality of his work. The AB Construction Co. is trying to
Roger is a finish carpenter who is in high demand because of the outstanding quality of his work. The AB Construction Co. is trying to get an exclusive contract for his work for the next two years. As an enticement, they are offering to pay him a lump sum today in exchange for his services for the next two years. Currently, Roger is prepaid on a monthly basis at a rate of $18,000 per month. What is the minimum contract amount that AB Construction can get Roger to consider if he refuses to take a pay cut? The applicable discount rate is 7.8%?
A) $375,000 B) $400,000 C) $425,000 D) $450,000 E) $475,000
The answer is C. But could you show me how to get the answer via financial calculator or excel please? Could you show me your steps? Ill give thumbs up
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