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Under the terms of his salary agreement, president Newman Walters has an option of receiving either an immediate bonus of $66,000, or a deferred bonus

Under the terms of his salary agreement, president Newman Walters has an option of receiving either an immediate bonus of $66,000, or a deferred bonus of $84,000 payable in 10 years. Click here to view factor tables Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept?

Present value of deferred bonus

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