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Problem:

You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get an extra $73,000 every seven years, starting seven years from now.

Required:

Question: What is the present value of this incentive if you plan to work for the company for 42 years and the interest rate is 6.4% (EAR)? (Note: Be careful not to round any intermediate steps less than six decimal places.)

Note: Please show the work not just the answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163247

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