Question
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
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 expect 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 year in terms of today's purchasing power, Company B: $45,000 the first year, with increases of $2500 per year thereafter, Company C: A constant $65,000 per year in terms of Year-5 based purchasing power. Answers: A $199,650 > B $193,958 > C $167,323
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