In 2021, you won the championship in a show. You can choose any one (1) of the
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Question:
In 2021, you won the championship in a show. You can choose any one (1) of the following reward packages.
Option 1: You will receive an amount of 10,000 in 10 years.
Option 2: Starting from today, you will get annual payments of 900 for 10 years.
Option 3: Beginning 1 year from today, you will get annual payments for 8 years. The first payment is 1000 and the amount would increase 3% yearly.
Compute the present value of each option if the discount rate you used is 5%.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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