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1) Sunland Corporation, having recently issued a $20,110,400, 15-year bond issue, is committed to make annual sinking fund deposits of $612,200. The deposits are made
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Under the terms of his salary agreement, president Adams Walters has an option of receiving either an immediate bonus of $55,000, or a deferred bonus of $70,000 payable in 10 years. Click here to view factor tables Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept?
Present value of deferred bonus | $ | |
Accept Deffered Bonus in 10 yearsAccept Bonus Now |
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