Comparing Cash Flow Streams $[$LO$1]$ You've just joined the investment banking

firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrange$-$

ments. You can have $$90,000$ per year for the next two years, or you can have $$77,000$

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?Comparing Cash Flow Streams $[$LO$1]$ You've just joined the investment banking

firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrange$-$

ments. You can have $$90,000$ per year for the next two years, or you can have $$77,000$

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?Comparing Cash Flow Streams $[$LO$1]$ You've just joined the investment banking

firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrange$-$

ments. You can have $$90,000$ per year for the next two years, or you can have $$77,000$

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? Use the Present Value formula: PV$=$FV$/(1+$r$)^$t