Your Employer Contributes $50 a Week to Your Retirement Plan

question 112

Multiple Choice

Your employer contributes $50 a week to your retirement plan.Assume that you work for your employer for another 20 years and that the applicable discount rate is 9 percent.Given these assumptions,what is this employee benefit worth to you today?

• A)$24,106.15
• B)$24,618.46
• C)$25,211.11
• D)$25,306.16
• E)$25,987.74

---

Definitions:

EVA

Economic Value Added, a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.

Operating Income

This metric reflects the profits earned from a company's core business operations, excluding non-operating income and expenses.

Cost Of Capital

The essential return rate an enterprise has to produce on its investment activities to sustain its market assessment and appeal to investors.

Cost Of Capital

The essential profit ratio a company is expected to reach in its investing endeavors to keep its marketplace value and attract financial backers.