Question: 1. *2.7 A contractor is deciding whether to work for Firm A or Firm B. Firm A is offering 20,000 for her ser vices, which

1. *2.7 A contractor is deciding whether to work for Firm A or Firm B. Firm A is offering €20,000 for her ser vices, which she will receive one year from today when the work has been completed. Firm B is offer ing to pay €11,000 in one year and another €9,400 in two years. If the discount rate is 3%, which con tract should she accept if her only consideration is maximizing her pay? Should her decision change if the discount rate was 6%? Explain. M

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