What job do you take

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Question - You have two competing job offers. Job #1 - offers $50,000 a year with a guarantee raise of 2% a year. Job #2 offers $48,000 with a guarantee of 6% raise every year. You know that you will stay at this job for 5 years minimum. You expect inflation (discount rate) to be around 3%. What job do you take?

Answer: Job #1 - The NPV is $250,450

Answer: Job #1 - The NPV is $397,232

Answer: Job #2 - The NPV is $246,984

Answer: Job #2 - The NPV is $415,002

Reference no: EM132993029

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