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After numerous years as a senior executive in the professional wrestling business, Aunt Edna is planning to retire on December 31, 2018. Her company has
After numerous years as a senior executive in the professional wrestling business, Aunt Edna is planning to retire on December 31, 2018. Her company has offered her two retirement choices. The first is twenty yearly payments of $122,000 each starting on December 31, 2019 and the second is a lump sum of $2.25 million payable on January 1, 2019. Which one should she pick if her opportunity cost of money is 7.20%.?
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