What is the present value of offer if discount rate

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Joe Masters has received a job offer from a large wine retailer. His base salary will be $50,000. He will receive his first annual salary payment one year from the day he begins work. He will also get an immediate $20,000 bonus for joining the company. His salary will grow at 4 percent each year. Each year he will also receive a bonus equal to 10 percent of his salary. Mr. Masters is expected to work for 25 years. What is the present value of the offer if the discount rate is 8 percent?

Reference no: EM131825364

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