You just graduated and Healthcare professionals are eager to hire you. You have two competing job offers. Job #1 offers $50,000 a year with a guaranteed raise of 2% a year. Job #2 offers $48,000 with a guarantee of 6% raise every year. You know that you will stay in this job for 5 years minimum. You expect inflation (discount rate) to be around 3%. What job do you take?

Answer: Job #1 The NPV is $250,450 Answer: Job #1 The NPV is $397,232 Answer: Job #2 The NPV is $246,984 Answer: Job #2 The NPV is $415,002