Question: Sue Ellen works for a large computer company. She expects to work this period and the next period, and then retire. Her current employer pays

Sue Ellen works for a large computer company. She expects to work this period and the next period, and then retire. Her current employer pays her $50,000/year. A rival firm offers her the same job at a salary of $56,000/year. However, Sue Ellen places a value of $10,000 on remaining with her current employer since she has many friends at her current company and does not enjoy meeting new people. Sue Ellen decides to reject the job offer. How much must Sue Ellen discount future benefits?

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