Consider the "Offer Matching Policy" game described in Lecture 5, but simplify the problem to just 1 year, rather than 30. Suppose that:

• The employee has an outside offer to work for $27 per hour, for 1500 hours per year
• The employee currently works for $20 per hour, for 2000 hours per year
• The switching cost can be either high ($1'000) or low ($50)
• The high switching cost has probability 40%; the low switching cost 60%

What is the value of the new offer for the employee? (note: there is nothing to discount since we have just 1 period