Question

The average cost (base salary, bonus, and other perks) of a junior, mid-level, and senior professional is $2500/week, $5000/week, and $15000/week respectively. The average expected value (in npv terms) from a completed deal is $4m. Due to the time value of money and goodwill-related costs, for each week that a deal is in the process, it is estimated that 1% of its value for the firm is lost. Given these numbers, what is your optimal staffing recommendation to maximize the firms yearly profit?

Answer 1

Answer:

The average expected value (NPV) from a completed deal is $4M. Due to time value of money and goodwill-related costs, for each week .

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