You are going to fund a new faculty position at CBS. The school tells you that they want to use your gift to hire another finance faculty position in a few years. This position will be filled 4 years from today, and the salary upon hiring will be $150,000 per year (assume that the first year's salary is paid immediately upon filling the position). The salary will then increase every year by 5% APR, compounded annually. They expect to have this position filled in the future. If your discount rates 69 APR. compounded monthly, what is fegmount that you need to give CBS today in order to fund this new position?

Answer rating: 100% (QA)

To calculate the total present value needed to fund the new finance faculty position at CBS today we ... View the full answer