John roberts is 51 years old and has been asked to accept


John Roberts is 51 years old and has been asked to accept early retirement from his company. The company has offered John three alternative compensation packages to induce John to retire: 1. $180,000 cash payment to be paid immediately. 2. A 16-year annuity of $18,000 beginning immediately. 3. A 10-year annuity of $52,000 beginning at age 61. Required: a. Assuming that John is able to invest funds at a 7% rate, determine the present value. (Use PV of $1, PVA of $1, and PVAD of $1)

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Financial Management: John roberts is 51 years old and has been asked to accept
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