Your salary next year is expected to be $40,000. Assume you expect your salary to grow at a steady rate of 3% per year for another 28 years. If the appropriate cost of capital (aka discount rate) is 10.0%, what is the PV today of your future salary cash flow stream? For simplicity, assume the salary amounts are at the end of each of the next 28 years. Answer to zero (0) decimal places.

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08-07-2024
Business

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Your salary next year is expected to be $40,000. Assume you expect your salary to grow at a steady rate of 3% per year for another 28 years. If the appropriate cost of capital (aka discount rate) is 10.0%, what is the PV today of your future salary cash flow stream? For simplicity, assume the salary amounts are at the end of each of the next 28 years. Answer to zero (0) decimal places.

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