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TABLE 1 PRESENT VALUE OF $1 n 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 20% 1 0.961538 0.952381 0.943396 0.934579 0.925926 0.917431 06% TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 n 4% 5% 7% 8% 9% 10% 12% 14% 16% 20% 1 0.961538 0.952381 0.943396 0.934579 0.925Gail Trevino expects to receive a $550,000 cash benefit when she retires seven years from today. Ms. Trevinos employer has o

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Answer #1
a
Amount to be received 550000
X PV factor 0.58349 =1/1.08^7
Present value 320920
Yes accept the offer as it is more beneficial
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