Q15 Under Present value future earnings model, how to compute the value of human resource if Mr. Ansari is appointed at the age of 30 in the organization and his service period expires in 30 years, once he attains the age of 60. The p.v. factor is assumed at 10%. Incase if Mr. Ansari draws a salary of OMR 600 per month then how is salary computed according to this method? a. All options are correct b. His each year’s salary of OMR 7,200 is multiplied with p.v. factor at the rate of 10% c. His salary is OMR 7,200 every year up to 30 years of his service. d.
Q15 Under Present value future earnings model, how to compute the value of human resource if Mr. Ansari is appointed at the age of 30 in the organization and his service period expires in 30 years, once he attains the age of 60. The p.v. factor is assumed at 10%. Incase if Mr. Ansari draws a salary of OMR 600 per month then how is salary computed according to this method? a. All options are correct b. His each year’s salary of OMR 7,200 is multiplied with p.v. factor at the rate of 10% c. His salary is OMR 7,200 every year up to 30 years of his service. d.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q15
Under Present value future earnings model, how to compute the value of human resource if Mr. Ansari is appointed at the age of 30 in the organization and his service period expires in 30 years, once he attains the age of 60. The p.v. factor is assumed at 10%. Incase if Mr. Ansari draws a salary of OMR 600 per month then how is salary computed according to this method?
a.
All options are correct
b.
His each year’s salary of OMR 7,200 is multiplied with p.v. factor at the rate of 10%
c.
His salary is OMR 7,200 every year up to 30 years of his service.
d.
Finally net present value is found and added to get the p.v. of future earnings
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