Youve just joined the investment banking firm of dewey


You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $7,900 per month for the next three years, or you can have $6,600 per month for the next three years, along with a $35,500 signing bonus today. Assume the interest rate is 5 percent compounded monthly. If you take the first option, $7,900 per month for three years, what is the present value?

Present value            $

What is the present value of the second option?

Present value            $

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Financial Management: Youve just joined the investment banking firm of dewey
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