Problem:
Moe Blacko has been offered a new contract by his employer which will give him the following amounts on an after-tax basis:
A sign-on bonus of $30,000 today
$60,000 one year from now
$70,000 two years from now and $90,000 three years from now
Given an interest rate of 7 percent, what is this contract worth today?
Explain comprehensively and show all workings.