You have just been offered a job. Your base salary will be $87,500 per year and the first year's annual salary will be received one year from the day you start working. You receive a bonus immediately of $12,500. Your salary will grow 4 percent per year, and you will receive a bonus of 10 percent of your salary. You expect to work for 30 years. Your discount rate is 6 percent. 

What is the present value of your offer?

Answer rating: 100% (QA)

Lets break down the cash flows Bonus received immediately 12500 no need to discount as its received ... View the full answer