You have finished your university degree, conducted interviews, and have received two job offers in different countries. Both jobs require you to commit to a 10-year contract. The pay structures of the contracts and the anticipated general price inflation in each country are listed below. The starting salaries already have been translated from the original currency in each country into Canadian dollars. Job offer 1 Job offer 2 Starting (year 1) salary $110,000 $101,000 Contractually determined salary increase per year, years 2-5 2.3% 2.8% Contractually determined salary increase per year, years 6-10 2.4% 4.7% Anticipated annual inflation years 2-10 2.2% 1.0% (a) How much would your salary be in year 10 under each option, as determined by the contractual terms above? (Another way to say this is, what would your market salary be in year 10.) Round your answers to the nearest dollar. (b) How much would your salary be in real terms (adjusted for inflation) in year 10 under each option? (c) In which year would your real salary (adjusted for inflation) from job offer 2 first be higher than from job offer 1? (d) Which option would be better, and why?

5. Problem 5. You have finished your university degree, conducted interviews, and have received two job offers in different countries. Both jobs require you to commit to a 10-year contract. The pay structures of the contracts and the anticipated general price inflation in each country are listed below. The starting salaries already have been translated from the original currency in each country into Canadian dollars. Job offer 2 $101,000 2.8% Job offer 1 Starting (year 1) salary $110,000 Contractually determined salary increase per 2.3% year, years 2-5 Contractually determined salary increase per 2.4% year, years 6-10 Anticipated annual inflation years 2-10 2.2% 4.7% 1.0% (a) How much would your salary be in year 10 under each option, as determined by the contractual terms above? (Another way to say this is, what would your market salary be in year 10.) Round your answers to the nearest dollar. (b) How much would your salary be in real terms (adjusted for inflation) in year 10 under each option? (c) In which year would your real salary adjusted for inflation) from job offer 2 first be higher than from job offer 1? (d) Which option would be better, and why