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Davenport Inc. offers a new employee a single-sum signing bonus at the date of employment. Alternatively, the employee can receive $33,000 at the date of
Davenport Inc. offers a new employee a single-sum signing bonus at the date of employment. Alternatively, the employee can receive $33,000 at the date of employment and another $53,000 2 years later. Assuming the employee's time value of money is 8% annually, what single sum at the employment date would make her indifferent between the two options?
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