Use the Following Information to Answer the Question(s)below

question 5

Multiple Choice

Use the following information to answer the question(s) below.
Suppose that you have received two job offers.Rearden Metal offers you a contract for $75,000 per year for the next two years while Wyatt Oil offers you a contract for $90,000 per year for the next two years.Both jobs are equivalent.Suppose that Rearden Metal's contract is certain,but Wyatt Oil has a 60% chance of going bankrupt at the end of the year.In the event that Wyatt Oil files for bankruptcy,it will cancel your contract and pay you the lowest amount possible for you to not quit.If you do quit,you expect you could find a new job paying $75,000 per year,but you would be unemployed for four months while searching for this new job.
-Assuming your cost of capital is 6 percent,the present value of your expected wage if you accept Rearden Metal's offer is closest to:

• A)$133,000.
• B)$138,000.
• C)$140,000.
• D)$144,000.

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Definitions:

Cell Types

various forms of cells that have unique structures and functions, making up different tissues and organs in living organisms.

Plants

Organisms belonging to the kingdom Plantae that are primarily autotrophic, photosynthetic, and multicellular, commonly found on land.

Stolons

Horizontal stems or runners that grow along the ground, producing new plants at the nodes, commonly seen in strawberry plants.

Rhizomes

Underground stems that grow horizontally, producing roots and shoots at intervals to enable some plants to spread.