Question: Assuming the same facts as P7- 5, how would the employees decision change if all retirement payments are received at the end of the year?
In P7- 5
Package A: $ 60,000 received today.
Package B: $ 10,000 to be received each year for the next eight years.
Package C: $ 40,000 received today and $ 5,000 per year for five years beginning at age 55
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Package A PV 60000 Package B This is considered an ordinary annuity because retirement payments are ... View full answer
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