Homework Answers
Hi
Please see the table below:
I have compared the two for r =10% and 20%, both cases show higher
present value for the high paying job!
| X | Y | |
| Income | 50000 | 75000 |
| Number of Years | 45 | 35 |
| r | 10.00% | 10.00% |
| Present Value of all Income | 493,140.39 | 723,311.92 |
| X | Y | |
| Income | 50000 | 75000 |
| Number of Years | 45 | 35 |
| r | 20.00% | 20.00% |
| Present Value of all Income | 249,931.64 | 374,365.13 |
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