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You are negotiating an offer for a project that will last two years. There are two options for you to claim your compensation. First, you
You are negotiating an offer for a project that will last two years. There are two options for you to claim your compensation. First, you can take an immediate upfront payment of $20,000 and your compensation for the next two years will be $75,000 per year. Second, you can take a compensation of $87,000 per year for the next two years. If the interest rate is 10%, which of the two options will you prefer? Justify your answer with appropriate calculations. Show all work.
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