question archive QRG Accounting Services has been offered an upfront retainer fee by Igloo Chilled Products to provide accounting services
QRG Accounting Services has been offered an upfront retainer fee by Igloo Chilled Products to provide accounting services
Subject:FinancePrice: Bought3
QRG Accounting Services has been offered an upfront retainer fee by
Igloo Chilled Products to provide accounting services. Under the deal, Igloo will pay a $30,000 retainer fee to QRG this month, and in return, Igloo would have access to 8 hours of accounting services from QRG each month for 12 months, starting next month. QRG's normal hourly rate is $250 for accounting services. Assuming that QRG's cost of capital is 12% EAR, then what is the NPV of this retainer offer?
