Question

Gail Trevino expects to receive a $630,000 cash benefit when she retires four years from today. Ms. Trevinos employer has of
0 0
Add a comment Improve this question Transcribed image text
Answer #1

a. Present value = Amount received after four years x Present value factor @10%, 4 years

= $630000*0.68301 = $409,806

No, Ms. Trevino should not accept the offer.

Add a comment
Know the answer?
Add Answer to:
Gail Trevino expects to receive a $630,000 cash benefit when she retires four years from today....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Martha Reagan expects to receive a $620,000 cash benefit when she retires six years from today. Ms. Reagan’s employer has offered an early retirement incentive by agreeing to pay her $362,000 toda...

    Martha Reagan expects to receive a $620,000 cash benefit when she retires six years from today. Ms. Reagan’s employer has offered an early retirement incentive by agreeing to pay her $362,000 today if she agrees to retire immediately. Ms. Reagan desires to earn a rate of return of 8 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not use a factor from a table in a different question, from the book, or...

  • TABLE 1 PRESENT VALUE OF $1 n 4% 5% 6% 7% 8% 9% 10% 12% 14%...

    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 0.909091 0.892857 0.877193 0.862069 0.833333 2 0.924556 0.907029 0.889996 0.873439 0.857339 0.841680 0.826446 0.797194 0.769468 0.743163 0.694444 3 0.888996 0.863838 0.8396190.816298 0.793832 0.772183 0.751315 0.711780 0.674972 0.640658 0.578704 4 0.854804 0.822702 0.792094 0.762895 0.735030 0.708425 0.683013 0.635518 0.592080 0.552291 0.482253 5 0.821927 0.783526 0.747258 0.712986 0.680583 0.649931 0.620921 0.567427 0.519369 0.476113 0.401878 6 0.790315 0.746215...

  • Problem 4-51 (Algorithmic) (LO. 4) Pam retires after 28 years of service with her employer. She...

    Problem 4-51 (Algorithmic) (LO. 4) Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $31,500 to her employer's qualified pension fund, all of which was taxable when earned. She elects to receive her retirement benefits as an annuity of $3,150 per month for the remainder of her life. Click here to access Exhibit 4.1 and Exhibit 4.2. a. Assume that Pam retired in June 2019 and collected six annuity payments that...

  • Short question answers 1. Khawla wants to have AED 900,000 in cash to buy a new car 4 years from today. She expects...

    Short question answers 1. Khawla wants to have AED 900,000 in cash to buy a new car 4 years from today. She expects to earn 9 percent per year, compounded annually, on her savings. How much should she deposit today to meet this purpose? 2. What is the future value of AED 85,000 deposited for 7 years at 10 percent interest compounded annually?

  • Penny bought a new truck today from Middlefield Motors. She will receive a cash rebate of...

    Penny bought a new truck today from Middlefield Motors. She will receive a cash rebate of 4,100 dollars from Middlefield Motors today, pay 27,600 dollars to Middlefield Motors in 1 year(s), receive a cash rebate of 5,500 dollars from Middlefield Motors in 4 year(s), and pay 25,600 dollars to Middlefield Motors in 7 year(s). If the discount rate is 12.39 percent, then what is the present value of the cash flows associated with this transaction? Note: the correct answer is...

  • A) Penny bought a new truck today from Middlefield Motors. She will receive a cash rebate...

    A) Penny bought a new truck today from Middlefield Motors. She will receive a cash rebate of 3,500 dollars from Middlefield Motors today, pay 23,700 dollars to Middlefield Motors in 1 year(s), receive a cash rebate of 8,800 dollars from Middlefield Motors in 2 year(s), and pay 25,100 dollars to Middlefield Motors in 9 year(s). If the discount rate is 8.67 percent, then what is the present value of the cash flows associated with this transaction? Note: the correct answer...

  • THE MBA DECISION Lexy Halliday graduated four years ago with degrees in accounting and finance. She...

    THE MBA DECISION Lexy Halliday graduated four years ago with degrees in accounting and finance. She has been employed in the finance department at Thorvaldsen Conglomerated (TC) since graduation. She is satisfied with her current job, but is considering an MBA degree to increase her skills and her advancement prospects. She has examined a number of MBA schools. She has narrowed her choices to 1) staying in her current job, 2) getting an MBA at Arrington University (AU) or 3)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT