You have been hired as the financial analyst at Merrill Lynch in California. The firm has offered
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You have been hired as the financial analyst at Merrill Lynch in California. The firm has offered you a choice of remuneration packages. Choice A is $60,000 US per year for a three year commitment. Choice B is $50,000 US per year for a three year commitment, plus a $26,000 US signing bonus paid up front. After the three year commitment a new remuneration package would be negotiable based on performance. Your opportunity cost on investments is 10%. Based on TVM only, which would you prefer?
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
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