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You are the chairman of the board of directors for an innovative technology company, and you...

You are the chairman of the board of directors for an innovative technology company, and you are looking to hire a new CEO. Your shareholders require an 8% return.
Your firm has 1,200 engineers who on average each contribute $240,000 to the annual revenue of the company and receive an average annual salary of $120,000.
What is the current annual revenue of the firm?

What is the current operating profit of the firm?
The first candidate for the CEO position, Jane Doe, successfully increased the productive output of engineering employees at her last firm by 5%, and is asking for total annual compensation of $3,500,000 and a three year contract.
What is the Present Cost of Jane Doe’s three year employment contract?
If Jane Doe increases the output of your firm’s engineers by 5%, what is her contribution to the firm’s operating profit?
What is the Present Value of Jane Doe’s three year contribution to operating profits?

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Here is solution of your question. If doubt please discuss.All the best

jeff jeffy answered 2 days ago
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