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1 John Roberts is 55 years old and has been asked to accepterly recrement from his company on July 1, the company offered John three

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1 John Roberts is 55 years old and has been asked to accepterly recrement from his company on July 1, the company offered John three alternative compensation packages to induke John to retire. Evo 51. Pof S1 EVA GEL PVA O $1. EVAD O Si and PVAD [5 (Use appropriate factor(s) from the tables provided) 1 $200.000 cash payment to be paids immediately 2 A 18-year annuity of $20.000 beginning immediately 3. A 10-year annuty of 566,000 beginning on July 1 of the year John reaches age 55 after 10 years) Required: Determine the present value, assuming that he is able to invest funds at a 8% rate, which alternative should John choose? (Round your final answers to nearest whole dollar amount) 00351 PY Alternative + 2 3 1 John Roberts is 55 years old and has been asked to accept early retirement from his company. On July 1, the three alternative compensation packages to Induce John to retire: (EV of $1. PV of $1. FVA of $1. PVA of $1. FL (Use appropriate factor(s) from the tables provided.) 1. $200,000 cash payment to be paid immediately. 2. A 18-year annuity of $20,000 beginning Immediately 3. A 10-year annuity of $66.000 beginning on July 1 of the year John reaches age 65 (after 10 years). Required: Determine the present value, assuming that he is able to invest funds at a 8% rate, which alternative should J- final answers to nearest whole dollar amount.) 3 00:54:55 Alternative PV 1 2 3 John should choose

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