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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

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 percent, which option should you choose?

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