Answer
The answer is $\$9$ million.
Work Step by Step
Annual payroll $=\$6$ million.
$60\%$ of this money $=6\cdot0.60=\$3.6$ million.
again they spend $60\%$ $3.6\cdot .60 = \$2.16$ million.
The infinitely geometric series is
$6,3.6,2.16,...$ and so on.
Total of all spending is $3.6+2.16...$
Use sum of the geometric series formula for infinite series.
$=\frac{3.6}{1-0.60}$
$=\frac{3.6}{0.40}$
$=9$.
