Question
2. David is an employee, who is retiring. He is given the option to choose between receiving 12 annual $80,000 payments, starting from today, or
2. David is an employee, who is retiring. He is given the option to choose between receiving 12 annual $80,000 payments, starting from today, or receiving a lump sum today. Knowing that he can invest at a rate of 7 percent annually, he has decided to take the lump sum. What lump sum today will be equivalent to the future annual payments?
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Advanced Finance
Authors: Michael Fardon
1st Edition
1872962319, 1872962173, 978-1872962313, 978-1872962177
