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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: a. Take the lump sum because it has the lower future value. b. Take the signing bonus because it has the higher future value. c. Based on these numbers, you are indifferent between the two. d. Take the lump sum because it has the higher present value. e. Take the signing bonus because it has the lower present value
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