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Salary arrangements in different banking firm

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Question: Comparing Cash Flow Streams. You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $6,700 per month for the next two years, or you can have $5,400 per month for the next two years, along with a $25,000 signing bonus today. If the interest rate is 7 percent compounded monthly, which do you prefer?

Reference no: EM131728268

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