Two different salary arrangements

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You have just joined an investment banking firm. They have offered you two different salary arrangements. You can have $50,000 per year for the next 3 years or $25,000 per year for the next 3 years, along with a $50,000 signing bonus today. If the market interest rate is 16%, which salary do you prefer (on a present value basis)?

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Reference no: EM13877945

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