NO RATE IF NO ANSWERS
Exercise 12A-2 Basic Present Value Concepts [LO12-7] Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $131,000 immediately as her full retirement benefit. Under the second option, she would receive $20,000 each year for 13 years plus a lump-sum payment of $50,000 at the end of the 13-year period. Click here to view and to determine the appropriate discount factor(s) using tables. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 14%. 1-b. If she can invest money at 14%, which option would you recommend that she accept? Complete this question by entering your answers in the tabs below. Calculate the present value for the following assuming that the money can be invested at 14%. (Round your final answers to the nearest whole dollar amount.) Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $131,000 immediately as her full retirement benefit. Under the second option, she would receive $20,000 each year for 13 years plus a lump-sum payment of $50,000 at the end of the 13-year period. Click here to view and to determine the appropriate discount factor(s) using tables. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 14%. 1-b. If she can invest money at 14%, which option would you recommend that she accept? Complete this question by entering your answers in the tabs below. If she can invest money at 14%, which option would you recommend that she accept? Exercise 12 A-1 Basic Present Value Concepts [LO12-7] Annual cash inflows that will arise from two competing investment projects are given below: The discount rate is 8%. Click here to view and to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment. Exercise 12 A-2 Basic Present Value Concepts [LO12-7] Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $131,000 immediately as her full retirement benefit. Under the second option, she would receive $20,000 each year for 13 years plus a lump-sum payment of $50,000 at the end of the 13 -year period. Click here to view and to determine the appropriate discount factor(s) using tables. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 14%. 1-b. If she can invest money at 14%, which option would you recommend that she accept? Complete this question by entering your answers in the tabs below. Calculate the present value for the following assuming that the money can be invested at 14%. (Round your final answers to the nearest whole dollar amount.)
