All capital has an employment contract with its newly hired


All Capital has an employment contract with its newly hired CFO which requires a lump sum payment of $2.5 million to be paid to the CFO upon the successful completion of his first three years of service. Alliance wants to set aside an equal amount of money at the end of each year to cover this anticipated cash outflow and will earn 6.25% per year on the funds. How much must Alliance set aside each year for this purpose?

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Financial Management: All capital has an employment contract with its newly hired
Reference No:- TGS01212839

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