What is the present value of the offer

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Tom Adams has received a job offer from a large investment bank. His base salary will be $40,000, with a bonus equal to 10% of his base salary every year. His salary is expected to grow at 4% each year. He will receive his first salary payment one year from the day he begins to work. In addition, he will get an immediate bonus $10,000 for joining the firm. Mr. Adams is expected to work for 25 years. What is the present value of the offer if the discount rate is 12%?

Reference no: EM132801973

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