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A software developer is offered a new job with a salary of $120,000. Their next best alternative is their current job, and they would have been willing to switch to the new job for any salary above $105,000. To take the new job, they must move and pay $20,000 per year for an apartment.
Which of the following statements correctly distinguishes between the different financial concepts in this scenario?
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A software developer is offered a new job with a salary of $120,000. Their next best alternative is their current job, and they would have been willing to switch to the new job for any salary above $105,000. To take the new job, they must move and pay $20,000 per year for an apartment.
Which of the following statements correctly distinguishes between the different financial concepts in this scenario?
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