Given a project salary cost of $400,000 per year and forecasted wage increases of 5 percent per year,calculate the non-discounted total salary cost over a three-year project lifecycle.
A)$61,000
B)$1,200,000
C)$1,240,000
D)$1,261,000

Question

Quizplus · Accepted Answer

The total salary cost over three years, accounting for a 5% annual increase, is calculated as follows: Year 1: $400,000, Year 2: $400,000 * 1.05 = $420,000, Year 3: $420,000 * 1.05 = $441,000. Adding these amounts gives $400,000 + $420,000 + $441,000 = $1,261,000.

Given a Project Salary Cost of $400,000 Per Year and Forecasted