Essay
Mr. Jackson has been awarded a bonus for his outstanding work. His employer offers him a choice of a lump-sum of $5,000 today, or an annuity of $1,250 a year for the next five years. Which option should Mr. Jackson choose if his opportunity cost is 9 percent?
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PVA = ($1,250/0.09) × [1-1/(1....View Answer
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Correct Answer:
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