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Group Member Names: You have received 2 job offers and are trying to decide between them. One very important consideration is

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Answer #1

PV= C0+ CF1/(1+r)^1 + CF2/(1+r)^2 …………CFn/(1+r)^n

Package 1

PV = 3000+ (4000+5000)/1.04^1+ (5000+50000) /1.04^2+ (13000+65000) /1.04^3

=131,846.15

Package 2

PV = 62000/1.04^1 + 65000/1.04^2 + 68000/1.04^3

=180,163.29

Package 2 is worth more.

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