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Gail Trevino expects to receive a $570,000 cash benefit when she retires six years from today. Ms. Trevino's employer has offered an early retirement incentive
Gail Trevino expects to receive a $570,000 cash benefit when she retires six years from today. Ms. Trevino's employer has offered an early retirement incentive by agreeing to pay her $340,000 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 ) Note: Use appropriate factor(s) from the tables provided. Required a. Calculate the present value of the $570,000 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? Note: Round your final answer to the nearest whole dollar value. Present Value of $1 Present Value of an Annuity of $1
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