Business, 20.03.2020 23:01 fireman59937

Suzanne is a recent chemical engineering graduate, who has been offered a five year contract at a remote location. She has been offered two choices. The first salary choice is a fixed salary of $75,000 per year. The second one has a starting salary of $65,000 with annual increases of 5% starting in year 2. For calculation purposes, assume that her salary is paid at the end of the year.

If the interest rate is 9%, calculate the present value P1 for choice 1 and present value P2 for choice 2 and determine which choice is best. The best answer is:

answer A: P2 = $277,170 and salary choice 2 is better than salary choice 1
answer B: P1 = $291,724 and salary choice 2 is better than salary choice 1
answer C: P2 = $277,070 and salary choice 1 is better than salary choice 2
answer D: P1 = $291,524 and salary choice 1 is better than salary choice 2
answer E: Either P1 or P2 or both are more than $1000 different from properly calculated values for P1 and/or P2

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:50

The u.s. stock market has returned an average of about 9% per year since 1900. this return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year. if you invest $100,000 and you earn 6% a year on it, how much real purchasing power will you have in 30 years?

Answers: 2

Answer

Business, 22.06.2019 01:00

The law says your employer is responsible for providing you with a safe and healthy workplace. true or false?

Answers: 1

Answer

Business, 22.06.2019 03:30

Acrosswalk_when there are no pavement markings.

Answers: 1

Answer

Business, 22.06.2019 19:30

Which of the following businesses is most likely to disrupt an existing industry? a. closer connex developed an earphone that receives emails and text messages and converts them to voice messages. the first models had poor reception, but they rapidly improved over time. b. mega technologies reconfigured the components used in its touchscreen tablets to create a new type of wearable device for use in restaurants and other service industries. c. particle inc. developed a teleportation technology that can transport physical materials instantaneously across great distances. d. altrea added advanced camera technology to its premium line of smartphones so that they would take the highest-quality photos of all phones on the market.

Answers: 1

Answer

You know the right answer?

Suzanne is a recent chemical engineering graduate, who has been offered a five year contract at a re...

Questions