Wednesday, November 13, 2019

You are considering changing jobs. Your goal is to work for three years and then return to school full-time in pursuit of an advanced degree

You are considering changing jobs. Your goal is to work for three years and then return to school full-time in pursuit of an advanced degree. A potential employer just offered you an annual salary of $41,000, $43,000, and $46,000 a year for the next three years, respectively. All salary payments are made as lump sum payments at the end of each year. The offer also includes a starting bonus of $3,000 payable immediately. What is this offer worth to you today at a discount rate of 6.75 percent? 
 
A. 
$111,406

B. 
$114,545

C. 
$116,956

D. 
$120,212

E. 
$133,697


 


72.
You are considering a project which will provide annual cash inflows of $4,500, $5,700, and $8,000 at the end of each year for the next three years, respectively. What is the present value of these cash flows, given a 9 percent discount rate? 
 
A. 
$14,877

B. 
$15,103

C. 
$15,429

D. 
$16,388

E. 
$16,847


 


73.
You just signed a consulting contract that will pay you $38,000, $52,000, and $85,000 annually at the end of the next three years, respectively. What is the present value of these cash flows given a 10.5 percent discount rate? 
 
A. 
$139,975

B. 
$148,307

C. 
$154,880

D. 
$157,131

E. 
$162,910


 

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