Question
Calculating Present Value..... Martha Reagan expects to receive a $630,000 cash benefit when she retires six years from today. Ms. Reagans employer has offered an
Calculating Present Value.....
Martha Reagan expects to receive a $630,000 cash benefit when she retires six years from today. Ms. Reagans employer has offered an early retirement incentive by agreeing to pay her $352,000 today if she agrees to retire immediately. Ms. Reagan desires to earn a rate of return of 12 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not use a factor from a table in a different question, from the book, or from a calculator.)
The answers I came up were (a-1) Present Value = $319,178 and (a-2) Yes |
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