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Martha Reaganexpects to receive a $580,000 cash benefit when she retires five years from today. Ms. Reagan's employer has offered an early retirement incentive by

Martha Reaganexpects to receive a $580,000 cash benefit when she retires five years from today. Ms. Reagan's employer has offered an early retirement incentive by agreeing to pay her $351,000 today if she agrees to retire immediately. Ms.Reagan 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. Do not use a factor from a table in a different question, from the book, or from a calculator.)

Required:a-1.Calculate the present value. (Round your final answer to the nearest dollar amount.)

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a-2.Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms.Reagan accept her employer's offer?

NoYes

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