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Under the terms of his salary agreement, president Steve Walters has an option of receiving either an immediate bonus of $77,000, or a deferred bonus

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Under the terms of his salary agreement, president Steve Walters has an option of receiving either an immediate bonus of $77,000, or a deferred bonus of $98,000 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 LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE

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