What is the present value of the offer

Assignment Help Financial Management
Reference no: EM131968096

Joe Masters has received a job offer from a large wine retailer. His base salary will be $100,000. He will receive his first annual salary payment one year from the day he begins work. He will also get an immediate $50,000 bonus for joining the company. His salary will grow at 4 percent each year, starting after the first year. Each year he will also receive a bonus equal to 5 percent of his salary. Mr. Masters is expected to work for 20 years. What is the present value of the offer if the discount rate is 7 percent?

Reference no: EM131968096

Questions Cloud

Determine the amount purchaser has to pay for the bond : Determine the amount a purchaser has to pay for the bond, if it yield a 12% compounded semiannually.
Open market purchase of government bonds : Suppose the federal reserve undertakes an open market purchase of government bonds, everything else held constant
What quarterly payment will the friend make on loan : The deal calls for a 9.28% APR “loan” rate with quarterly compounding. What quarterly payment will the friend make on the loan?
What conclusion can be drawn from information : Both of these countries represent worldwide extremes. What conclusion can be drawn from this information?
What is the present value of the offer : Joe Masters has received a job offer from a large wine retailer. What is the present value of the offer if the discount rate is 7 percent?
Create a sexual harassment policy for your selected company : Create a sexual harassment policy for your selected company to address a sexual harassment complaint. Cover both quid pro quo and hostile work environment.
Enrolled in postsecondary education : According to the text, three women for every two men are enrolled in postsecondary education.
Compute the npv statistic for project : Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent.
Enrolled in postsecondary education : This might lead to a reduction in the gender gap for all of the following reasons, EXCEPT that

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd