Question
Carla is ready to retire and has a choice of three pension plans. Plan A provides for an immediate cash payment of $348,000. Plan B
Carla is ready to retire and has a choice of three pension plans. Plan A provides for an immediate cash payment of $348,000. Plan B provides for the payment of $40,500 per year for 6 years and the payment of $193,000 at the end of year 6. Plan C will pay $35,000 per year for 6 years. Carla desires a return of 6 percent. Click here to view factor tables Determine the present value of each plan. (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answers to 2 decimal places, e.g. 125.25. Enter negative amounts using either a negative sign preceding the number e.g. -45.12 or parentheses e.g. (45.12).) Present value Plan A $ Plan B $ Plan C $ Select the best one. is the best one.
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