Question

In: Finance

You have just received a job offer at an investment bank, an dare offered the 2...

You have just received a job offer at an investment bank, an dare offered the 2 salary options.Both are for 2 years, with the salary to be paid in equal amounts at the end of the month.

Option 1 is $75,000 per year for 2 years. Option 2 is $64,000 per year for 2 years, and a signing bonus of $20,000 to be paid immediately.

The appropriate interest rate is 7% per year.

Which option should you choose.

Please show the calculate inputs.

Solutions

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 3 hours ago
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