Question
BDO Limited just hired you and has offered you two different salary arrangements. Arrangement 1: you can have $90,000 per year for the next two
BDO Limited just hired you and has offered you two different salary arrangements.
Arrangement 1: you can have $90,000 per year for the next two years or
Arrangement 2: you can have $65,000 per year for the next two years, along with a $45,000 signing bonus today.
Cash and Marketable Securities $100 Fixed Assets $283.50 Sales $1,000.0 Net Income $50.00 Quick Ratio 2.0X Current Ratio 3.0X Days Sales Outstanding 40 days Return On Equity 12% The bonus is paid immediately, and the salary is paid at the end of each year. If the interest rate is 10 percent compounded monthly, which do you prefer?
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