hw_6_prob_4

# hw_6_prob_4 -...

This preview shows page 1. Sign up to view the full content.

#4 Season Salary Bonus Payment 2005 \$2,500,000.00 \$1,000,000.00 \$3,500,000.00 2006 \$1,750,000.00 \$1,000,000.00 \$2,750,000.00 2007 \$4,100,000.00 \$1,000,000.00 \$5,100,000.00 2008 \$4,700,000.00 \$1,000,000.00 \$5,700,000.00 2009 \$5,000,000.00 \$1,000,000.00 \$6,000,000.00 2010 \$6,200,000.00 \$1,000,000.00 \$7,200,000.00 2011 \$6,750,000.00 \$1,000,000.00 \$7,750,000.00 2012 \$6,000,000.00 \$1,000,000.00 \$7,000,000.00
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: +\$6,000,000(P/F,7%,4)+\$7,200,000(P/F,7%,5)+\$7,750,000(P/F,7%,6)+\$7,000,000(P/F,7%,7) =D3+D4*0.9346+D5*0.8734+D6*0.8163+D7*0.7629+D8*0.713+D9*0.6663+D10*0.6227 \$34,411,125.00 Part A \$6,389,300.00 Part B Since \$6,500,000>\$6,389,300, take the lump-sum. P contract =\$3,500,000+\$2,750,000(P/F,7%,1)+\$5,100,000(P/F,7%,2)+\$5,700,000(P/F,7%,3) P bonus =\$1,000,000+\$1,000,000(P/A,7%,7)...
View Full Document

## This note was uploaded on 08/31/2009 for the course PHYS 1234 taught by Professor Judge during the Fall '09 term at USC.

Ask a homework question - tutors are online