You have just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary

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You have just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $85,000 per year for the next two years, or you can have $74,000 per year for the next two years, along with a $30,000 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 9 percent compounded monthly, what is the PV for both the options? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

Present Value of Option 1:

 

Present Value of Option 2:

    • 8 years ago
    You have just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered y
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