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John Roberts is 50 years old and has been asked to accept early retirement from his company. On July 1, the company offered John
John Roberts is 50 years old and has been asked to accept early retirement from his company. On July 1, the company offered John three alternative compensation packages to induce John to retire: (EV of $1. PV of $1. EVA of $1, PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. $185,000 cash payment to be paid immediately. 2. A 13-year annuity of $22,000 beginning immediately. 3. A 10-year annuity of $62,000 beginning on July 1 of the year John reaches age 60 (after 10 years). Required: Determine the present value, assuming that he is able to invest funds at a 8% rate, which alternative should John choose? (Round your final answers to nearest whole dollar amount.) Alternative 2 3 John should choose 80 000 non PV < Prev 11 of 15 Next > MacBook 00 Dil
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