You currently earn $52084 per year. If your salary grows at an assumed 2.8% average inflation rate, How much will your annual salary be in 25 years?

 

2  Assume the following for your corporation:

sales (aka revenue) = $388

Cost of goods sold = 160

depreciation = 35

Interest Expense = 20

tax rate = 40% 

What is the corporation's total after tax net income?  

 

Your salary next year is expected to be $40,000. Assume you expect your salary to grow at a steady rate of 4% per year for another 27 years and you retire at that time. If the appropriate cost of capital (aka discount rate) is 9.2%.

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 27 years.

Answer rating: 100% (QA)

To calculate your salary in 25 years we can use the formula for future value with continuous compounding FV PV ert where PV is the present value of your salary 52084 r is the annual inflation rate 28 ... View the full answer