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Garland Incorporated offers a new employee a single-sum signing bonus at the date of employment, June 1, 2024. Alternatively, the employee can receive $43,000 at
Garland Incorporated offers a new employee a single-sum signing bonus at the date of employment, June 1, 2024. Alternatively, the employee can receive $43,000 at the date of employment plus $14,000 each June 1 for five years, beginning in 2028. Assuming the employee's time value of money is 8% annually, what single amount at the employment date would make the options equally desirable?
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