Question
You expect to earn $50,000 annually at graduation, with the first payment in 1 year, and you hope your salary will grow at a rate
You expect to earn $50,000 annually at graduation, with the first payment in 1 year, and you hope your salary will grow at a rate of 10%. Your discount rate is 12%. What is the PV of your future earnings if you expect to work forever?
a.$2,100,000
b.$420,000
c.$350,000
d.$2,500,000
e.$500,000
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Management Science The Art Of Modeling With Spreadsheets
Authors: Stephen G. Powell, Kenneth R. Baker
3rd Edition
0470530677, 978-0470530672
