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Sam has successfully found a part-time job in Ottawa. The job agreement shows that Sam will get payments for the next 5 years with an
Sam has successfully found a part-time job in Ottawa. The job agreement shows that Sam will get payments for the next 5 years with an annual growth rate of 2.5%. The first payment will take place at the end of first year and is $25,000. If the market's discount rate is 5% what is this job worth to Sam today? Select one: a. $228,897 b. $125,000 c. $113,512 d. $214,884 e. $2,500,000
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