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Fresh out of college, you are negotiating with your prospective new employer. They offer you a signing bonus of OMR1,000,000 today or a lump sum
Fresh out of college, you are negotiating with your prospective new employer. They offer you a signing bonus of OMR1,000,000 today or a lump sum payment of OMR1,250,000 three years from now. If you can earn 7% on your invested funds, which of the following is true? Select one: O a. Based on these numbers, you are indifferent between the two. O b. Take the signing bonus because it has the lower present value O c Take the signing bonus because it has the higher future value. O d. Take the lump sum because it has the higher present value. e Take the lump sum because it has the lower future value Previous page Next page 3
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