mechanical contractor has four employees whose combined salaries through the end of this year are $250,000. If he expects to give an average raise of 5% each year, calculate the present worth of the employees' salaries over the next 5 years. Let I = 12% per year.

mechanical contractor has four employees whose combined salaries through the end of this year are $250,000. If he expects to give an average raise of 5% each year, calculate the present worth of the employees' salaries over the next 5 years. Let I = 12% per year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

mechanical contractor has four employees whose combined salaries through
the end of this year are $250,000. If he expects to give an average raise of
5% each year, calculate the present worth of the employees' salaries over the
next 5 years. Let I = 12% per year.

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