You currently earn $52084 per year. If your salary grows at an assumed 2.8% average inflation rate, How much will your annual salary be in 25 years?

 

2  Assume the following for your corporation:

sales (aka revenue) = $388

Cost of goods sold = 160

depreciation = 35

Interest Expense = 20

tax rate = 40% 

What is the corporation's total after tax net income?  

 

Your salary next year is expected to be $40,000. Assume you expect your salary to grow at a steady rate of 4% per year for another 27 years and you retire at that time. If the appropriate cost of capital (aka discount rate) is 9.2%.

What is the PV today of your future salary cash flow stream? For simplicity, assume the salary amounts are all at the end of each of the next 27 years.