Clipboard Font Styles X E D F G H B I A You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $75,000 per year for the next two years, or you can have $64,000 per year for the next two years, along with a $20,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. If the interest rate is 7 percent compounded monthly, which do you prefer? 4 5 6 Years for contract Periods per year 2 12 7 8 Amount per year in Option 1 75,000 9 10 11 12 Amount per year in Option 2 Signing bonus in Option 2 $ $ 64,000 20,000 13 14 APR 7% 15 16 17 Complete the following analysis. Do not hard code values in your calculations. All answers should be positive. 18 19 Present value of Option 1 Sheet1 1 Saved F E D G B A H Years for contract Periods per year 2 12 Amount per year in Option 1 $ 75,000 Amount per year in Option 2 $ Signing bonus in Option 2 $ 64,000 20,000 2 3 4 APR 7% 5 6 7 Complete the following analysis. Do not hard code values in your calculations. All answers should be positive. 8 9 Present value of Option 1 20 21 22 Present value of Option 2 Excluding bonus 23 24 Including bonus 25 26 27 28