Exercise 10-3A Determining the present value of a lump-sum future cash receipt LO 10-1 Gail Trevino expects to receive a $640,000 cash benefit when she retires six years from today. Ms. Trevino's employer has offered an early retirement incentive by agreeing to pay her $353,000 today if she agrees to retire immediately Ms. Trevino desires to earn a rate of return of 10 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided) Required o. Calculate the present value of the $640,000 future cash benefit. Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Trevino accept her employer's offer? (Round your final answer to the nearest whole dollar value) Present value Should Ms. Trevino accept the offer? Exercise 10-4A Determining the present value of an annuity LO 10-1 The dean of the School of Fine Arts is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machine would add to student convenience, but the dean feels compelled to earn an 10 percent return on the investment of funds. Estimates of cash inflows from copy machines that have been placed in other university buildings indicate that the copy machine would probably produce incremental cash inflows of approximately $19.000 per year. The machine is expected to have a three year useful life with a zero salvage value. (Use appropriate foctor(a) from the tables provided.) Required a. Use Present Value Appendix PV of 51. to determine the maximum amount of cash the dean should be willing to pay for a copy machine (Round your intermediate calculations and final answer to 2 decimal places.) b. Use Present Value Appendix PVA of $1 to determine the maximum amount of cash the dean should be willing to pay for a copy machine (Round your final answer to 2 decimal places.) 3. Maximum amount (PV) b Maximum amount PVA)