You have received two job offers, one in Madison and one in location U (for undened). The job in Madison pays $20,000 a year and entails no moving costs. The job in Location U pays $30,000 a year but entails moving costs of $60,000. You've done enough research to determine that cost of living differences between Madison and Location U are slight and can be neglected. Location U offers a life style much like Madison; your decision will be based on wealth maximization. You expect to hold either job for a very long time, indeed to make the calculations easy you assume that you will hold either one forever. Furthermore, you assume that you will be paid (in either job} at the end of the year, while moving costs would have to paid inunediately. Under these assumptions the case ows are: Table 2: Cash Flows By Location