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Problem 1-11 (LO1.3) A financial company that advertises on television will pay you $60,000 now for annual payments of $10,000 that you are expected to

Problem 1-11 (LO1.3)

A financial company that advertises on television will pay you $60,000 now for annual payments of $10,000 that you are expected to receive for a legal settlement over the next 10 years. Use Exhibit 1-D.

a. What is the present value of the annual payments if you estimate the time value of money at 10 percent? (Round your PVA factor to 3 decimal places and final answer to the nearest whole dollar.)

b. Should you accept this offer?

multiple choice

No

Yes

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