A supermarket wants to allocate 1.25% as a bounce to reward the hardworking employees from the total that will be made annually. The sales are expected to be ($350,320) in the first year and ($362,320) in the second year. The amount increases each year is 6% for the coming 12 years. If the interest rate was 8% per year, what is the equivalent annual worth of this bonus in years 1 to 14? Provide the cashflow diagram

A supermarket wants to allocate 1.25% as a bounce to reward the hardworking employees from the total that will be made annually. The sales are expected to be ($350,320) in the first year and ($362,320) in the second year. The amount increases each year is 6% for the coming 12 years. If the interest rate was 8% per year, what is the equivalent annual worth of this bonus in years 1 to 14? Provide the cashflow diagram

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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