![rissaroo159](/avatars/28597.jpg)
rissaroo159
06.04.2020 •
Business
Under the terms of his salary agreement, president Steve Walters has an option of receiving either an immediate bonus of $77,000, or a deferred bonus of $98,000 payable in 10 years.
Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept?
Solved
Show answers
More tips
- H Health and Medicine How to Choose the Right Tanning Cream?...
- C Computers and Internet How to Download Movies from Torrents?...
- S Style and Beauty How to Sew Harem Pants?...
- C Computers and Internet Е-head: How it Simplifies Life for Users?...
- F Family and Home How to Choose the Best Diapers for Your Baby?...
- F Family and Home Parquet or laminate, which is better?...
- L Leisure and Entertainment How to Properly Wind Fishing Line onto a Reel?...
- L Leisure and Entertainment How to Make a Paper Boat in Simple Steps...
- T Travel and tourism Maldives Adventures: What is the Best Season to Visit the Luxurious Beaches?...
- H Health and Medicine Kinesiology: What is it and How Does it Work?...
Answers on questions: Business
- B Business a type of manufacturing process used to make a wide variety of highly customized products in quantities as small as one is the definition of a. product-based layout. b. production...
- C Chemistry World leaders met in Copenhagen, Denmark in December 2009, to try to come up with an agreement that would lead to reducing greenhouse gas emissions. They agreed that we need to reduce...
- P Physics A)iii) as the wheelbarrow was being pushed, the tyre went over a small stone. Describe and explain how the pressure changes....
- M Mathematics Y intercept of x^3-3x^2-4x+12...
Ответ:
Immediate bonus of $77,000
Explanation:
Given the following
Immediate bonus = $77,000
Differed bonus = $98,000
Rate = 4%
Duration = 10
$66,205 deferred bonus
$77,000 immediate bonus
Calculating the differed bonus
We have
=$98,000 x 0.67556= $66,205
Present value of deferred bonus
= $66,205
He has a choice of collecting either an immediate bonus of $77,000, or collect a deferred bonus of $66,205 payable in 10 years
The best option for Walters is to collect an immediate bonus now
Ответ:
$66,205 deferred bonus
$77,000 immediate bonus
Explanation:
$98,000 discounted at 4% for 10 years
=$98,000 x 0.67556= $66,205
Present value of deferred bonus $66,205
Walters has an option of receiving either an immediate bonus of $77,000, or a deferred bonus of $66,205 payable in 10 years
Therefore Walter should accept the bonus of $77,000 now.
Ответ:
Equity Capital or equity funding refers to the money raised by corporations through stock markets
Explanation: