Contract at a remote location

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Suzanne is a recent chemical engineering graduate who has been offered a 5-year contract at a remote location. She has been offered two choices. The first is a fixed salary of $75,000 per year. The second has a starting salary of $65,000 with annual raises of 5% starting in Year 2. (For simplicity, assume that her salary is paid at the end of the year, just before her annual vacation.) If her interest rate is 9%, which should she take?

Reference no: EM131807579

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