Lauren is a recent environmental engineering graduate who has been offered a 5-year contract at a remote location. She has been offered two choices. The first is a fixed salary of $75,000 per year. The second has a starting salary of $65,000 with annual raises of 5% starting in Year 2. (For simplicity, assume that her salary is paid at the end of the year, just before her annual vacation.) If the interest rate is 8%, which option should she take? Tip: compare options from Present perspective