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...

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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 from a calculator.)

Required:

a-1.	Calculate the present value. (Round your final answer to the nearest dollar amount.)

a-2.	Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Reagan accept her employer’s offer?

	No Yes

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math Advanced-Math

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Answer 1

Answer #1

ac) Now, calculatio the poesen Valve we kno that Then, /-1 (+ 0.08) psepent value 6,ao,co 6,80,000 .5868 lue of :メ290, 600 Po en, MS. Reagen shaa not accepi the offes

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Answer 2

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...

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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...

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Gail Trevino expects to receive a $630,000 cash benefit when she retires four years from today....

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

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...

Homework Answers

Add Answer to: 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...

Post as a guest

Earn Coins

Gail Trevino expects to receive a $630,000 cash benefit when she retires four years from today....

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

Add Answer to:
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...