You expect to receive a $10,000 annual bonus in 12 months because of your efforsts in landing a large client for your firm. How much is the bonus worth today if your opportunity cost is 3%?
$9,709
10,000 x (1/(1.03)#1)=9709
What is opportunity cost?
The value or advantage forfeited by engaging in a specific activity in comparison to engaging in a different activity is known as the opportunity cost in microeconomic theory. Simply put, it means that if you choose one activity, you forfeit the chance to do another.
Therefore,
You expect to receive a $10,000 annual bonus in 12 months because of your efforsts in landing a large client for your firm. How much is the bonus worth today if your opportunity cost is 3%?
$9,709
10,000 x (1/(1.03)#1)=9709
To learn more about opportunity cost from the given link:
https://brainly.com/question/3611557
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