Assume that the starting salary for a computer programmer in the United States is C$75,000 compared to C$50,000 in Canada, that the starting age is 25, and that the person expects to be continuously employed until age 65. Assume, further, that earnings can be expected to grow at 6 percent per year in both jobs.

Calculate the present value of earnings under the two alternatives, assuming a discount rate of 5 percent. How much would a potential migrant have to value living in Canada in order to stay?

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Okay lets solve this stepbystep Starting salary in US C75000 Starting salary in Canada C50000 Sta... View the full answer