Roger is a finish carpenter who is in high demand because of the outstanding quality of his work. The AB Construction Co. is trying to get an exclusive contract for his work for the next two years. As an enticement, they are offering to pay him a lump sum today in exchange for his services for the next two years. Currently, Roger is prepaid on a monthly basis at a rate of $18,000 per month. What is the minimum contract amount that AB Construction can get Roger to consider if he refuses to take a pay cut? The applicable discount rate is 7.8%?

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The Answer of Roger is a finish carpenter who is in high demand because of the outstanding quality of his work. The AB Construction Co. is trying to get an exclusive contract for his work for the next two years. As an enticement, they are offering to pay him a lump sum today in exchange for his services for the next two years. Currently, Roger is prepaid on a monthly basis at a rate of $18,000 per month. What is the minimum contract amount that AB Construction can get Roger to consider if he refuses to take a pay cut? The applicable discount rate is 7.8%?

Roger Is a Finish Carpenter Who Is in High Demand