PV of $1 is- 0.513158

PVA of $1 is- 4.868419

Martha Reagan expects to receive a $640,000 cash benefit when she retires seven years from today. Ms. Reagan's employer has offered an early retirement incentive by agreeing to pay her $360,000 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.) a-2. Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Reagan accept her employer's offer? Yes No