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As you are negotiating your salary, your employers offers you two options. First, you can take an immediate payment of $20,000 and your salary for
As you are negotiating your salary, your employers offers you two options. First, you can take an immediate payment of $20,000 and your salary for the next two years will be $71,000 per year. Second, you can take a salary of $81,000 per year for the next two years. If the interest rate is 12%, which of the two options will you prefer? Justify your answer with appropriate calculations.
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