Question
Your rich uncle named you as the beneficiary of his life insurance policy. The insurance company gives you a choice of $100000 today or a
Your rich uncle named you as the beneficiary of his life insurance policy. The insurance company gives you a choice of $100000 today or a 12-year annuity of $12000 at the end of each year. If the going interest rate is 8%, which option would you choose and why?
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
978-0073526706, 9780073526706
