Determine the present value of each plan

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Question - Calculate Present Value

Juanita Martinez is ready to retire and has a choice of three pension plans. Plan A provides for an immediate cash payment of $275,000. Plan B provides for the payment of $27,500 per year for 10 years and the payment of $275,000 at the end of year 10. Plan C will pay $55,000 per year for 10 years. Juanita Martinez desires a return of 9 percent.

Determine the present value of each plan. (Round present value factor calculations tQuestiono 4 decimal places, e.g. 0.2525. Round all other calculations and final answer to 0 decimal places, e.g. 5,250.)

Reference no: EM131789332

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