How much is the compensation package worth

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Reference no: EM131793853

Question: A consultant at a top-tier firm has been signed to a three year, $7 million contract. The details of the contract provide for an immediate cash bonus of $1 million. The consultant is to receive $1.5 million in salary at the end of the first year, $2 million at the end of the next year, and $2.5 million at the end of the last year. Assuming a 10% discount rate, how much is this compensation package worth at the time of the (signing of the) contract?

Reference no: EM131793853

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