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QUESTION 6 Words Two corporations, Firm A and Firm B, both make you a job offer on January 31, 2021. (You are very thankful that

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QUESTION 6 Words Two corporations, Firm A and Firm B, both make you a job offer on January 31, 2021. (You are very thankful that you spent your winter break on your job searchh) (This is the same scenario as the prior question. However, this question is entirely independent from all other questions on this exam) Suppose that Firm A offers a higher salary than Firm B. Firm A offers you $60,000 per year while Firm Boffers you $50,000 per year. However you think your wages at Firm B will grow at 3% per year while your wages will only grow at 2% per year at Firm A. Given that both firms will pay pensions until you are very old, assume that your salary is a perpetuity and that you receive your entire annual salary as a single annual payment with the first payment coming exactly one year from now. Assume that inflation will remain at 0% from now on Assume that you have an annual discount rate of 6%. What is the present value, as of now, for each of these two offers? PV A- PV B Option pricing variable #2

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