What is the fw of paul extra income

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Reference no: EM131506634

Question: Paul works for a government agency in southern California making $70,000 per year. He is now being transferred to a branch office in Tennessee. The salary reduction associated with this transfer is 11%. Paul is not insulted by this reduction in pay and accepts his new location and salary gladly. He researched that the cost of living index in California is 132 whereas the cost of living index in Tennessee is 95. Over the next five years, what is the FW of Paul's extra income/improved life style (through the reduced cost of living) from having made this move? Paul's MARR is 10% per year (i_m).

Reference no: EM131506634

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