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Andrew is contemplating between two three-year contract job opportunities. His first option guarantees him $100,000 per year, while his second option offers him $50,000 +
Andrew is contemplating between two three-year contract job opportunities. His first option guarantees him $100,000 per year, while his second option offers him $50,000 + a bonus per year. Suppose that Andrew's bonus in the first year is $40,000, second year is $80,000, and last year is $10,000, then which job opportunity should Andrew go for? Assume that the discount rate is 5%.
Show your calculations.
Andrew is contemplating between two three-year contract job opportunities. His first option guarantees him $100,000 per year, while his second option offers him $50,000 + a bonus per year. Suppose that Andrew's bonus in the first year is $40,000, second year is $80,000, and last year is $10,000, then which job opportunity should Andrew go for? Assume that the discount rate is 5%.
Show your calculations.
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