Ignoring tax considerations and assuming a relevant


Question - Under the terms of his salary agreement, President Juan Rivera has an option of receiving either an immediate bonus of $56,000, or a deferred bonus of $98,000 payable in 10 years. Ignoring tax considerations, and assuming a relevant interest rate of 8%, which form of settlement should Rivera accept?

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Accounting Basics: Ignoring tax considerations and assuming a relevant
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