You have been offered a job with an unusual bonus structure. As long as you stay with thefirm, you will get an extra

$75,000

every

7

years, starting

7

years from now. What is the present value of this incentive if you plan to work for the company for

42

years and the interest rate is

8%

(EAR)?

(Note:

Be careful not to round any intermediate steps less than six decimalplaces.)

You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get an extra $75,000 every 7 years, starting 7 years from now. What is the present value of this incentive if you plan to work for the company for 42 years and the interest rate is 8% (EAR)? (Note: Be careful not to round any intermediate steps less than six decimal places.) The present value of this incentive is $ (Round to the nearest cent.)