ssume that the starting salary for a computer programmer in the United States is C$75,000 compared to C$50,000 in Canada (all values in Canadian dollars), that the starting age is 25, and that the person expects to be continuously employed until age 65. Assume, further, that earnings can be expected to grow at 6 percent per year in both jobs. A. Calculate the represent the value of earnings under the two alternatives, assuming a discount rate of 5 percent. How much would a potential migrant have to value living in Canada in order to stay? (I recommend doing this calculator in excel. You do not have to provide me with the calculations (i.e., your excel output), just the final answer. Y0u should NOT be using the approximation B. What factors can you identify (and possibly the value) that might offset the benefits of moving? Note:-
Assume that the starting salary for a computer programmer in the United States is C$75,000 compared to C$50,000 in Canada (all values in Canadian dollars), that the starting age is 25, and that the person expects to be continuously employed until age 65. Assume, further, that earnings can be expected to grow at 6 percent per year in both jobs.
A. Calculate the represent the value of earnings under the two alternatives, assuming a discount rate of 5 percent. How much would a potential migrant have to value living in Canada in order to stay? (I recommend doing this calculator in excel. You do not have to provide me with the calculations (i.e., your excel output), just the final answer. Y0u should NOT be using the approximation
B. What factors can you identify (and possibly the value) that might offset the benefits of moving?
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