Google has made an offer to buy your start-up. As long as you keep working...
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Google has made an offer to buy your start-up. As long as you keep working for the firm, Google promises to pay you the following amounts over the next 5 years, at the end of each year.
| Year | Payment |
| 1 | 500,000 |
| 2 | 600,000 |
| 3 | 700,000 |
| 4 | 700,000 |
| 5 | 750,000 |
You think that your company is worth $100,000 more than the total offered value. You also want to receive $1,000,000 right now and prefer a monthly payment to an annual payment for the remaining amount, with the first monthly payment occuring one month from now and the last one 5 years from now.
The annual interest rate is 7% (EAR).
If Google agrees to your terms, how much can you expect per month?
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