Recommend him to leave his current job for the new job

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Reference no: EM131444355

Your friend is seeking some advice from you. He is currently working for a firm that is paying him $70,000 per year with 1% increment per year. However, your friend has currently been approached by another firm for employment. That firm is willing to pay him $80,000 per year. When your friend’s current employer learned about your friend’s interest in leaving the firm, they decided to double his annual salary increment. Both of the firms guarantee him the job till he decides to quit. If your friend plans to work for 40 years and market interest rate remains at 4%, would you recommend him to leave his current job for the new job? Please do your computation and make your conclusion.

Reference no: EM131444355

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