As a recent graduate, you are considering employment offers from three different companies. However, in an effort

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As a recent graduate, you are considering employment offers from three different companies. However, in an effort to confuse you and perhaps make their offers seem better, each company has used a different purchasing power base for expressing your annual salary over the next 5 years. If you anticipate inflation to be 6% for the next 5 years and your personal (real) MARR is 8%, which plan would you choose? Company A: A constant $50,000 per you" in terms of today's purchasing power. Company B: $45,000 the first year, with increases of $2500 per year thereafter.

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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