Determine the present value to invest funds at a rate

Assignment Help Financial Econometrics

Reference no: EM13333045

John Roberts is 50 years old and has been asked to accept early retirement from his company. The company has offered John three alternative compensation packages to induce John to retire:

1. $186,000 cash payment to be paid immediately.
2. A 12-year annuity of $23,000 beginning immediately.
3. A 10-year annuity of $59,000 beginning at age 60.

Determine the present value, assuming that he is able to invest funds at a 7% rate.

Reference no: EM13333045

Questions Cloud

Circumstances would this type of policy action be appropriat : The central bank decides to implement an expansionary policy action. What would you expect to happen to the nominal interest rate, the real interest rate and the money supply and credit growth? Under what economic circumstances would this type of pol..

What was the initial speed of the bullet : A 5.00g bullet is fired horizontally into a 1.30kgwooden block resting on a horizontal surface. What was the initial speed of the bullet

Explain the ph at the equivalence point : the pH at the equivalence point. the pH after adding 6.0 mL of acid beyond the equivalence point

Explain the organization profile : Explain the organization profile and the Information System use in this organization

Determine the present value to invest funds at a rate : John Roberts is 50 years old and has been asked to accept early retirement from his company. The company has offered John three alternative compensation packages to induce John to retire.

There is not enough information to answer the question : Suppose that an MBA degree creates no externality because the benefits of an MBA are internalized by the student in the form of higher wages. If there are no government subsidies for MBAs, then which of the following statements is correct

What will be the amount of its taxable capital gain : Calculate The Stork Company's Federal Part I tax payable (excluding any additional Refundable Tax) for 20x12 and calculate The Stork Company's 20x12 taxable income.

Determine what is the price of the stock today : Thirsty Cactus Corp. just paid a dividend of $1.20 per share. The dividends are expected to grow at 15 percent for the next eight years and then level off to a growth rate of 5 percent indefinitely.

Discuss aspect of ajax in relation to service architecture : AJAX will help the trend of pushing software as a service on the Web! Discuss this aspect of AJAX in relation to the Service Oriented Architecture of Web services. Are the two really doing the same thing, or is AJAX fundamentally used for a more r..

User Account

All Pages