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Toselli Animation plans to offer its employees a salary enhancement package that has revenue sharing as its main component. Specifically, the company will set aside 1.000% of total sales revenue for year-end bonuses. The sales are expected to be $5 million the first year, $5.5 million the second year, and amounts increasing by 10% each year for the next 5 years. At an interest rate of 14.00% per year, what is the equivalent annual worth in years 1 through 5 of the bonus package? (Round the final answer to three decimal places.) Therequivalent annual worth of the bonus package is $

Toselli Animation plans to offer its employees a salary enhancement package that has revenue sharing as its main component. Specifically, the company will set aside 1.000% of total sales revenue for year-end bonuses. The sales are expected to be $5 million the first year, $5.5 million the second year, and amounts increasing by 10% each year for the next 5 years. At an interest rate of 14.00% per year, what is the equivalent annual worth in years 1 through 5 of the bonus package? (Round the final answer to three decimal places.) Therequivalent annual worth of the bonus package is $

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Toselli Animation plans to offer its employees a salary enhancement package that has revenue sharing as its main component. Specifically, the company will set aside 1.000% of total sales revenue for year-end bonuses. The sales are expected to be $5 million the first year, $5.5 million the second year, and amounts increasing by 10% each year for the next 5 years. At an interest rate of 14.00% per year, what is the equivalent annual worth in years 1 through 5 of the bonus package? (Round the final answer to three decimal places.) Therequivalent annual worth of the bonus package is $
Transcribed Image Text:Toselli Animation plans to offer its employees a salary enhancement package that has revenue sharing as its main component. Specifically, the company will set aside 1.000% of total sales revenue for year-end bonuses. The sales are expected to be $5 million the first year, $5.5 million the second year, and amounts increasing by 10% each year for the next 5 years. At an interest rate of 14.00% per year, what is the equivalent annual worth in years 1 through 5 of the bonus package? (Round the final answer to three decimal places.) Therequivalent annual worth of the bonus package is $
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