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Google has made an offer to buy your start-up. As long as you keep working...

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Accounting

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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