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Your firm needs to downsize one of its divisions and is tasking you with offering buyouts to two of the five non-managerial employees in the
- Your firm needs to downsize one of its divisions and is tasking you with offering buyouts to two of the five non-managerial employees in the division. The manager of that division has given you the information in the table below based on her assessment of the annual present value of each employees current wages, productivity, alternatives (which implicitly incorporates time before retirement).
- If the manager of that division made an announcement to all five of these employees that layoffs were necessary if no one took the buyouts offered to them, how would that alter your decision about who to offer the buyouts to and how much to offer?
| Name | PV(wages) | PV(productivity) | PV(alternative) |
| Kaylee | $120,000 | $100,000 | $102,000 |
| Jayne | $80,000 | $45,000 | $70,000 |
| River | $390,000 | $360,000 | $320,000 |
| Malcolm | $300,000 | $340,000 | $280,000 |
| Zo | $185,000 | $165,000 | $166,000 |
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The Basics Of IT Audit Purposes Processes And Practical Information
Authors: Stephen D. Gantz
1st Edition
0124171591, 978-0124171596
