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Davenport Inc. offers a new employee two options. First, the employee can receive a one-time signing bonus at the date of employment. Second, the employee
Davenport Inc. offers a new employee two options. First, the employee can receive a one-time signing bonus at the date of employment. Second, the employee can take $30,000 at the date of employment and another $46,000 seven years later. Assuming the employee's time value of money is 10% annually, what single payment in the first option would be equal to the total of the payments in the second option? (FV of $1, PV of $1, FVA of $1, and PVA of $1). (Use appropriate factor(s) from the tables provided.) Davenport Inc. offers a new employee two options. First, the employee can receive a one-time signing bonus at the date of employment. Second, the employee can take $30,000 at the date of employment and another $46,000 seven years later. Assuming the employee's time value of money is 10% annually, what single payment in the first option would be equal to the total of the payments in the second option? (FV of $1, PV of $1, FVA of $1, and PVA of $1). (Use appropriate factor(s) from the tables provided.)
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