Your friends current employer hears about the job offer from the competition and decides to do everything possible to match. However, she acknowledges that she cannot change the pecuniary compensation to avoid the inherent risks of equity in the organization. What she can do is work on the compensation growth rate over time.

Using the data ito estimate what the growth rate in pecuniary compensation should be in order for your friend to be indifferent between the two offers based on their net present values over 10 years and at a discount rate of 7.5%?

[Hint: Use Goal Seek option under the Data tab in Excel for easy calculation of the indifference compensation growth rate.]