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OPTION 1 OR OPTION 2 You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You

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OPTION 1 OR OPTION 2

You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $75,000 per year for the next two years, or you can have $64,000 per year for the next two years, along with a $20,000 signing bonus today. The bonus is paid immediately, and the salary is paid at the end of each month. If the interest rate is 10% compounded monthly, what is the PV for both the options? (Do not round intermediate calculations. Round

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