Your late, rich uncle left you $250,000. The executor of the estate has asked if you would
Question:
Your late, rich uncle left you $250,000. The executor of the estate has asked if you would rather receive the full amount now or $30,000 a year for the next 40 years. Which of these options would you take, assuming that your desired rate of return is
1. 10%?
2. 12%?
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1 Since the present value of 250000 today is 250000 we must compare the present value of 30000 a yea...View the full answer
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Related Book For 
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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