Question
Siobhan Roy is offered a new job as a political advisor in Washington DC. Her current job in NYC pays her $450,000 per year
Siobhan Roy is offered a new job as a political advisor in Washington DC. Her current job in NYC pays her $450,000 per year and could last her 3 more years. The new job would give her $300,000 the first year, $500,000 the second year, and $750,000 the last year. Siobhan's discount rate is 25%. Siobhan also really does not want to move to DC - the total cost for her is M = $500,000. But the job in DC is willing to pay her a bonus to compensate for the moving cost. What is the minimum amount of bonus money the company could pay her in order for her to accept the DC job?
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
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