33. Determining the present value of a lump-sum future cash receipt

Brooks Long expects to receive a $560,000 cash benefit when she retires four years from today. Ms. Longs employer has offered an early retirement incentive by agreeing to pay her $361,000 today if she agrees to retire immediately. Ms. Long desires to earn a rate of return of 10 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

Required

a-1.

Calculate the present value. (Round your final answer to the nearest dollar amount.)

PRESENT VALUE ( )

a2.	Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Long accept her employers offer?
	( ) NO or ( ) YES