Jerry recently was offered a position with a major accounting firm. The firm offered Jerry either a

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Question:

Jerry recently was offered a position with a major accounting firm. The firm offered Jerry either a signing bonus of $23,000 payable on the first day of work or a signing bonus of $26,000 payable after one year of employment. Assuming that the relevant interest rate is 10%, which option should Jerry choose?

(A). Insufficient information to determine.

(B). The options are equivalent.

(C). The signing bonus of $23,000 payable on the first day of work.

(D). The signing bonus of $26,000 payable after one year of employment.