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You are considering a job that offers a starting bonus of $2,500, paid immediately, and an annual salary of $44,000, $47,000, and $50,000 for the
You are considering a job that offers a starting bonus of $2,500, paid immediately, and an annual salary of $44,000, $47,000, and $50,000 for the next 3 years, respectively. The annual salary is paid at the end of each year. What is this offer worth today at a discount rate of 5.6 percent?
I have - but it's apparently wrong? What am I doing wrong :(
year | cash flow | pvf@5.6% | pv |
0 | 2500 | 0.94697 | 2367.424 |
1 | 46500 | 0.896752 | 41698.95 |
2 | 47000 | 0.849197 | 39912.24 |
3 | 50000 | 0.804163 | 40208.17 |
SUM | 124186.79 |
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