Your employer has promised to give you a $5,000 bonus after you have been working for him for 5 years. What is the present value of this bonus if the proper discount rate is 8%?
Answer
Present value = 5000 x (1.08)^-8 = 3402.92
Your employer has promised to give you a $5,000 bonus after you have been working for him for 5 years. What is the present value of this bonus if the proper discount rate is 8%?
Answer
Present value = 5000 x (1.08)^-8 = 3402.92
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