What is the present value of the offer

Assignment Help Financial Management

Reference no: EM131826533

Tom Adams has received a job offer from a large investment bank as a clerk to an associate banker. His base salary will be $65,000. He will receive his first annual salary payment one year from the day he begins to work. In addition, he will get an immediate $15,000 bonus for joining the company. His salary will grow at 4.5 percent each year. Each year he will receive a bonus equal to 10 percent of his salary. Mr. Adams is expected to work for 20 years.

What is the present value of the offer if the discount rate is 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)

Reference no: EM131826533

Questions Cloud

Characteristic of common stock ownership : Which of the following is not a characteristic of common stock ownership? Residual claimant Unlimited liability Voting rights Limited life of the security.

Define type of connectivity to enterprise systems : With the proliferation of smart phones and intelligent computing tablets such as the iPad, enterprises are increasingly faced with employees who want to bring t

Find the length and width of the wall of the barn : The area of a rectangular wall of a barn is 110 square feet. Its length is 12 feet longer than twice its width.

Which lines get indented in a works cited page : What does the abbreviation Ed. mean? Which lines get indented in a Works Cited page? What word must appear in the citation if it is from the internet?

What is the present value of the offer : Tom Adams has received job offer from large investment bank as clerk to associate banker. What is present value of offer if the discount rate is 10 %.

Determine cost to government of buying firms unsold units : Determine the cost to the government of buying firms unsold units and Compute the lost social welfare (deadweight loss) that stems from the $35 price floor

Describing the design for a small web site : Develop a 5-6 page Word document that describes the design for a small Web site that meets the following specifications.

How many shares of each stock does he ?own : If stock B triples in value and stock A goes up? 50%, his stock will be worth ?$42,000. How many shares of each stock does he ?own?

Demonstrate the skill of creating a web page : Continue to build on the skills of providing Web page content and structure with HTML and Web page style and layout using CSS.

User Account

All Pages