What is the present worth of the bonus

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Reference no: EM131807435

Graph the answer for Problem 5.1 for discount rates ranging from 0% to 20%

Problem 1

Cathy, a graduating civil engineering student, is offered a job at a remote construction project overseas. If Cathy is still with the project when it is completed at the end of year 5, she will receive a bonus of $100,000. Her discount rate is 12%. What is the present worth of the bonus? (Answer: $56,740)

Reference no: EM131807435

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