Siobhan Roy is offered a new job as a political advisor in Washington DC. Her current...
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Siobhan Roy is offered a new job as a political advisor in Washington DC. Her current job in NYC pays her $450,000 per year and could last her 3 more years. The new job would give her $300,000 the first year, $500,000 the second year, and $750,000 the last year. Siobhan's discount rate is 25%. Siobhan also really does not want to move to DC - the total cost for her is M = $500,000. But the job in DC is willing to pay her a bonus to compensate for the moving cost. What is the minimum amount of bonus money the company could pay her in order for her to accept the DC job? Siobhan Roy is offered a new job as a political advisor in Washington DC. Her current job in NYC pays her $450,000 per year and could last her 3 more years. The new job would give her $300,000 the first year, $500,000 the second year, and $750,000 the last year. Siobhan's discount rate is 25%. Siobhan also really does not want to move to DC - the total cost for her is M = $500,000. But the job in DC is willing to pay her a bonus to compensate for the moving cost. What is the minimum amount of bonus money the company could pay her in order for her to accept the DC job?
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Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
Posted Date:
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