A small internet company plans to offer its employees a


A small internet company plans to offer its employees a salary enhancement package which has revenue sharing as its main component. Specifically, the company will set aside 1% of total sales for yearend bonuses for all of its employees. The sales are expected to be $5 million the first year, $6 million the second year, and amounts increasing by 15% each year for the next 6 years. At an interest rate of 10% per year, what is the present worth of the bonus package?

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: A small internet company plans to offer its employees a
Reference No:- TGS01072615

Expected delivery within 24 Hours