John Roberts is 55 years old and has been asked to accept early retirement from his...

Question

Question

John Roberts is 55 years old and has been asked to accept early retirement from his company. On July 1, the company offered J

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

1. is correct.

2. ($16,000 X 10.3356) + $16,000 = $181,370

3. $50,000 X 7.02358 X 0.54393 = $191,017

Alternative	PV
1	$180,000
2	$181,370
3	$191,017
John should choose	Alternative 3

Add a comment

Answer 2

Similar Homework Help Questions

John Roberts is 55 years old and has been asked to accept early retirement from his...

John Roberts is 55 years old and has been asked to accept early retirement from his company. On July 1, the company offered John three alternative compensation packages to induce John to retire: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. $170,000 cash payment to be paid immediately. 2. A 15-year annuity of $20,000 beginning immediately. 3. A 10-year annuity of...
John Roberts is 55 years old and has been asked to accept early retirement from his...

John Roberts is 55 years old and has been asked to accept early retirement from his company. On July, the company offered John three alternative compensation packages to induce John to retire (FV of St. PV of SL FVA of SL PVA of SL FVAD of 51 and PVAD of $1 (Use appropriate factors) from the tables provided) 1. $220,000 cash payment to be paid immediately, 2. A 19-year annuity of $21.000 beginning immediately 3. A 10-year annuity of $67,000...
Problem 5-8 (Algo) Deferred annuities (LO5-8] John Roberts is 50 years old and has been asked...

Problem 5-8 (Algo) Deferred annuities (LO5-8] John Roberts is 50 years old and has been asked to accept early retirement from his company. On July 1, the company offered John three alternative compensation packages to induce John to retire: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. $185,000 cash payment to be paid immediately. 2. A 13-year annuity of $22,000 beginning...

Check my work Check My Work button is now enabled5Item 5Item 5 4 points John Roberts...

Check my work Check My Work button is now enabled5Item 5Item 5 4 points John Roberts is 50 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: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. $179,000 cash payment to be paid immediately. 2....
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.4% ~ service years...

Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.4% ~ service years * final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $82,000 at the end of 2021 and the company's actuary projects her salary to be $240,000 at...
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.3% × service years...

Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.3% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $91,000 at the end of 2021 and the company's actuary projects her salary to be $285,000 at...

John has an investment opportunity that promises to pay him $14,104 in four years. Suppose the...

John has an investment opportunity that promises to pay him $14,104 in four years. Suppose the opportunity requires John to invest $10,760 today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What is the interest rate John would earn on this investment? (Round your interest rate to the nearest whole percentage.) Please show me the work, thank you! Solve for i Present...
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% x service years...

Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% x service years x final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $85,000 at the end of 2021 and the company's actuary projects her salary to be $255,000 at...
John has an investment opportunity that promises to pay him $12,500 in four years. He could...

John has an investment opportunity that promises to pay him $12,500 in four years. He could earn a 5% annual return investing his money elsewhere. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What is the maximum amount he would be willing to invest in this opportunity? (Round your final answers to the nearest whole dollar amount.)

Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.4% * service years...

Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.4% * service years * final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $97,000 at the end of 2021 and the company's actuary projects her salary to be $315,000 at...

John Roberts is 55 years old and has been asked to accept early retirement from his...

Homework Answers