A financial company advertises on television that they will pay you $65,000 now in exchange for annual payments of $11,000 that you are expected to receive for a legal settlement over the next 9 years. You estimate the time value of money at 9 percent.

(a) Calculate the present value of the annual payments. Use Exhibit 1-D. (Round time value factor to 3 decimal places and final answer to the nearest whole number.)

(b) Would you accept this offer?

• Yes

• No