2 Suppose that you inherited from a rich relative an allowance of $50,000 a year, starting tomorrow,
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2 Suppose that you inherited from a rich relative an allowance of $50,000 a year, starting tomorrow, when your age is 60 (there are fewer years to use in the calculation than if we assumed that you were 20). Could this (or similar cash-flow patterns) be seen as an asset?
What is the allowance worth today as a lump sum? Bear in mind that there is a huge market where retirees trade a lump sum for an annuity (a regular amount received over a future period). What other factors need to be considered?
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Related Book For 
Accounting For Business Students
ISBN: 9781488616570
1st Edition
Authors: Peter Atrill, Eddie Mclaney, David Harvey
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