You

are thinking about changing employment. Your goal is to work for three years

and then return to university full-time, in pursuit of an advanced degree. A

potential employer just offered you an annual salary of R55 000, R60 000 and R65

000 a year for the next three years, respectively. All salary payments will be made

as lump sum payments at the end of each year. The offer also includes a

starting bonus of R4 500, payable immediately. What is this offer worth to

you today, at a discount rate of 8,25%?