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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.
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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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