villafana36
villafana36
11.02.2020 • 
Business

Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $120,000 immediately as her full retirement benefit. Under the second option, she would receive $15,000 each year for ten years plus a lump-sum payment of $50,000 at the end of the ten-year period.

Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables.

Required:
1a.
Calculate the present value for the following assuming that the money can be invested at 11%. (Use the appropriate table to determine the discount factor(s).)

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