You have two job offers with the following 6-year compensation terms: the first one offers you $80,000 a year for the next 6 years; the other one offers you a signing bonus of $15,000 plus $50,000 a year for the first 4 years and then 60,000 a year for the last two years. Assume that the appropriate discount rate is 12% and there are no taxes.

a. How much would you lose in present value if you accepted the second offer?

b. Propose a change to the second offer that would make you indifferent between the two offers.