What is josh bonus, Josh Ritchey has just been hired as a

What is josh bonus

Assignment Help Engineering Mathematics

Reference no: EM131505828

Question: Josh Ritchey has just been hired as a cost engineer by a large airlines company. Josh's first idea is to stop giving complimentary cocktails, wine, and beer to the international flying public. He calculates this will save 5,000,000 drinks per year, and each drink costs $0.50, for a total of $2.5 million per year. Instead of complimentary drinks, Josh estimates that the airlines company can sell 2,000,000 drinks at $5.00 per drink. The net savings would amount to $12.5 million per year! Josh's boss really likes the idea and agrees to give Josh a lumpsum bonus now equaling 0.1% of the present equivalent worth of three years of net savings. If the company's MARR is 20% per year, what is Josh's bonus?

Reference no: EM131505828

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