Under the terms of his salary agreement, president Newman Walters has an option of receiving either an immediate bonus of $77,000, or a deferred bonus of $98,000payable in10years.

Ignoring tax considerations and assuming a relevant interest rate of4%, which form of settlement should Walters accept?

Present value of deferred bonus$enter a dollar amount rounded to 0 decimal places

select an option

Accept Deffered Bonus in 10 yearsAccept Bonus Now