You have just learned that you are a beneficiary in the will of your late Aunt Susan.
Fantastic news! We've Found the answer you've been seeking!
Question:
You have just learned that you are a beneficiary in the will of your late Aunt Susan. The executrix of her estate has given you three options as to how you may receive your inheritance:
a. You may receive $63,000 immediately.
b. You may receive $86,000 at the end of five years.
c. You may receive $20,000 at the end of each year for five years (a total of $10,000).
Required:
If you can invest money at a 11% return, which option would you prefer?
Related Book For
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
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