E16-3 Gall Trevino expects to receive a $500.000 cash benefit when she retires five years from today. Ms. Trevino's employer has offered an early retirement incentive by agreeing to pay her $325.000 today if she agrees to retire immediately. Ms. Trevino desires to eam a rate of refum of 8 percent Required: Round your figures to the nearest whole dollar. o f Ms. Trevino accepts the $325.000. how much will it be worth in 5 years Assume she earns a return of 8 percent and makes no withdrawals over the 5-year period Year Interest Eamed Ending Balance Beginning Balance $325.000 1 Using Time Value of Money Tables: Present Value Time Value Factor Future Value b. What is the value today for Ms. Trevino of receiving $500.000 in five years, assuming she can earn a return of 8 percent per year in other words, how much money would she need to receive today to be indifferent between receiving that amount today or $500.000 three years from now? (She would invest the money over the next 5 years) Using Time Value of Money Tables: Future Value Time Value Factor Present Value C. Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Trevino accept her employer's offer d. Identify the factors that cause the present value of the retirement benefit to be less than $500.000