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Your company has hit hard times and needs to make budget cuts until they can complete a merger with another company which should fix the

Your company has hit hard times and needs to make budget cuts until they can complete a merger with another company which should fix the financial issues. You are currently earning $65,000 and have been a loyal employee for 15 years and your boss does not want to have to let you go due to the budget. To make sure he can keep his best employees, he comes up with the following compromise. He asks if you would be willing to hang in there for one year for a merger to take place and finances to improve and take a 10% pay cut if he promises to give you 10% pay increase after one year to get you back to your usual base salary. In fact, he adds, he wants to show appreciation for you sticking with the company with lost wages for that one year, so he offers to give you a 10.5% pay increase instead. How do you respond?

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