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What is the pv today of your future salary cash flow stream

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Problem 1: Your salary next year is expected to be $40,000. Assume you expect your salary to grow at a steady rate of 3% per year for another 22 years and you retire at that time. If the appropriate cost of capital (aka discount rate) is 10.7%, what is the PV today of your future salary cash flow stream? For simplicity, assume the salary amounts are all at the end of each of the next 22 years. Answer to zero (0) decimal places. Hint: this is a growing "annuity" valuation problem.

Reference no: EM132965296

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