After completing a long and successful career as senior vice
president for a large bank, you are preparing for retirement. After
visiting the human resources office, you have found that you have
several retirement options to choose from:

Never use plagiarized sources. Get Your Original Essay on
Question: After completing a long and successful career as senior vice president for a large bank, you are …
Hire Professionals Just from $11/Page
Order Now Click here

An immediate cash payment of $1.14 million.

Payment of $64,000 per year for life.

Payment of $54,000 per year for 3 years and then $74,000 per
year for life (this option is intended to give you some protection
against inflation).

You believe you can earn 6 percent on your investments and your
remaining life expectancy is 6 years.   

Required:
1. Calculate the net present value of each option. (Future
Value of $1, Present Value of $1, Future Value Annuity of $1,
Present Value Annuity of $1.) (Use appropriate factor(s)
from the tables provided. Enter your answers in dollars but not in
millions. Round the final answer to nearest whole
dollar.)


Net Present Value
Option
A
Option
B
Option
C

2. Determine which option you prefer.

Option A
Option B
Option C

Open chat
Lets chat on via WhatsApp
Hello, Welcome to our WhatsApp support. Reply to this message to start a chat.