Evaluate what is the pv for both the options

Assignment Help Financial Management

Reference no: EM132048587

You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements.

You can have $69,000 per year for the next two years, or you can have $58,000 per year for the next two years, along with a $14,000 signing bonus today.

The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month.

If the interest rate is 9 percent compounded monthly, what is the PV for both the options? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Reference no: EM132048587

Questions Cloud

What is the difference in pv between the two retirement : Option B pays you $1,000 a month in perpetuity (your heirs will receive this even after you pass on). Both options send you the first check in one month.

What is your estimated value per share for preferred stock : A preferred stock will pay a dividend of $1.25 in the upcoming year, and every year thereafter, i.e., dividends are not expected to grow.

Calculate the costs per equivalent unit of production : The Fields Company has two manufacturing departments, forming and painting. Calculate the costs per equivalent unit of production for the forming department

Find the npv of investing into the machine : The project involved a production of new type of shipping containers, which were significantly more durable and had a considerably longer useful life compared.

Evaluate what is the pv for both the options : You can have $69,000 per year for the next two years, or you can have $58,000 per year for the next two years, along with a $14,000 signing bonus today.

Unit product cost under absorption costing method : 1.) Compute the unit product cost under absorption costing method. 2.) Compute the unit product cost under variable/marginal costing method.

Determine the npv of delaying the investment : When preparing capital budgeting analysis for a new project, Chris Johnson, a chief financial officer at BT Industries, faced a dilemma.

Prepare the department equivalent units of production : Prepare department's equivalent units of production with respect to direct materials under each of three separate assumptions using the weighted average method

Does higher growth lead to a higher multiple in this case : Company C is projected to earn $160 million in EBITA next year, grow at 5 percent per year, and generate ROICs equal to 12 percent.

User Account

All Pages