David Jetter Case Study

label Business
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

What initial salary would David need to receive to make him indifferent between attending Prentice University and staying in his current position?

Explain in detail with calculations.

Sep 28th, 2015

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S / .025 ( 1 -(1.04 / 1.065)^38) *.69 * 1/(1.065)^2 +20000/(1.065)^2 -(73000+73000/1.065)
13.42282312 S - 123911.4152  = 779,402.90
13.4228212 S = 903314.3152
S  = 67296.90441
So initial salary should be $67,296.90441 to make Ben indifferent between
attending University  and staying in his current position.

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Sep 30th, 2015

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