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QUESTIONG 13. Your annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you 6 months' salary now. Option

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QUESTIONG 13. Your annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you 6 months' salary now. Option 2 pays you and your heirs $6,000 per year forever (first payment at the end of this year. If your required return is 11%, which option should you choose? 13(1)How much is the value for alternative 1? QUESTION7 13(2)How much is the value of a ternative 27

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