What is most you should pay for the annuity

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Reference no: EM131834932

1. How might Wal-Mart (or another large company) take advantage of each of the following: Do not merely provide a definition. Provide a specific example of each Show all answers in Excel.

a. Flexibility option

b. Growth option

c. Investment timing option

d. Abandonment option

e. Decision-tree analysis

2. You have a chance to buy an annuity that pays $1,200 at the end of each month for 36 months. You could earn an annual nominal rate of 6.0% on your money in other investments with equal risk. What is the most you should pay for the annuity? Please show how its performed in excel.

None of the above

$30,754

$26,369

$39,445

$27,757

Reference no: EM131834932

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