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This will be answered on excel with a formula: David is an employee, who is retiring. He is given the option to choose between receiving

This will be answered on excel with a formula:

David is an employee, who is retiring. He is given the option to choose between receiving 12 annual $80,000 payments, starting from today, or receiving a lump sum today. Knowing that he can invest at a rate of 7 percent annually, he has decided to take the lump sum. What lump sum today will be equivalent to the future annual payments?

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