(Ignore income taxes in this problem. )Judy Soope just received an annual raise of $500 starting with the current year.If Judy anticipates working for eight more years (including the current year)and the cash flows are discounted at 8%,what cash award today would be equivalent to the pay raise?
A)$4,000
B)$2,874
C)$2,160
D)$2,603

Question

Quizplus · Accepted Answer

PV = Cash flow F1F1F1S1F1F1F10 PV Factor
= $500 F1F1F1S1F1F1F10 5.747
= $2,874

(Ignore Income Taxes in This Problem