Question: Rather than compare the payout options at their present values, compare the payout options at their future value nine years from now. Using a
Rather than compare the payout options at their present values, compare the payout options at their future value nine years from now. Using a 6% interest rate, what is the future value of each payout option? a. b. Rank your preference of payout options. C. Does computing the future value rather than the present value of the options change your preference of payout options? Explain. (Click the icon to view the future value factor table.) (Click the icon to view the present value factor table.) (Click the icon to view the future value annuity factor table.) (Click the icon to view the present value annuity factor table.) Data table a. Using a 6% interest rate, what is the future value of each payout option? Compute the future value of each payout option. (Round your answers to the nearest whole dollar.) Future value of Option 1 Option 1: $995,000 now Option 2: Option 3: $153,000 at the end of each year for the next nine years $1,550,000 nine years from now Print Done
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