Question: PLEASE SHOW EXCEL formula for answer so I can rate you well. Thank you. My age is 31 years old. 1. You are offered a

PLEASE SHOW EXCEL formula for answer so I can rate you well. Thank you. My age is 31 years old.

1. You are offered a contract with a signing bonus. If they offered you either $215,000 in cash or $2,000 a month for 15 years, guaranteed, which do you take (based strictly on the math)? Your safe rate of return is 7.5%.

2. Computer value of the $2,000 a month here:

3. Which is greater? The lump sum or the cash flow?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!