What is the present value of the second option

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Reference no: EM132048601

You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements.

You can have $7, 400 per month for the next two years, or you can have $6, 100 per month for the next two years, along with a $33,000 signing bonus today.

Assume the interest rate is 6 percent compounded monthly. If you take the first option, $7, 400 per month for two years, what is the present value?

What is the present value of the second option?

Reference no: EM132048601

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