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You have recently graduated from college, and after a job search that took 4 months, you received an offer from an advertising firm. The position offers training, the opportunity for advancement, and a bonus of up to $5,000 based on performance. The annual salary is $40,000, which is lower than you expected; your research found the average pay for similar jobs is $50,000. Your average monthly living expenses are $2,000, and you have $7000 in savings. You know from a friend who works there that prospective employees typically try to negotiate after receiving a job offer and that the company expects to receive a counter offer from you. The higher your request, the less likely the company is to agree with it. You must decide whether to accept the offer or ask for a higher salary and, if so, what it will be. Conduct an analysis that uses a decision tree and states your BATNA (best alternative to a negotiated agreement) and reservation value to support your decision. Explain the analysis and your decision.
Your response should be at least 300 words in length.
Unlevered net income is also known as net operating profit after tax. It is obtained by multiplying:
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