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QUESTION 5 As a recent graduate, you are considering employment offers from three different companies. However, in an effort to confuse you and perhaps make
QUESTION 5 As a recent graduate, you are considering employment offers from three different companies. However, in an effort to confuse you and perhaps make their offer seems better, each company has used a different purchasing power base for expressing your annual salary over the next five years. If you expect inflation to be 6% for the next five years and real interest rate of 8%, which plan would you choose? Company A: A constant $500,000 per year in terms of today's purchasing power. Company B: 445,000 the first year, with increase of $2500 per year thereafter. Company C: A constant $65,000 per year in terms of today's purchasing power. Attach File Browse Local Files Browse Content Collection
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