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Under the terms of his salary agreement president bob wnek

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Under the terms of his salary agreement, president Bob Wnek has an option of receiving either an immediate bonus of $40,000or a deferred bonus $75,000 payable in ten years. Assuring an interest rate of 8%, should Bob take the $40,000 today or take the $75,000 ten years from now?

Reference no: EM13594265

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