Bonus now or bonus deferment in 10 years

Reference no: EM1358985

Under the terms of his salary agreement, president Juan Rivera has an option of receiving either an immediate bonus of $40,000, or a deferred bonus of $75,000 payable in 10 years. Ignoring tax considerations, and assuming a relevant interest rate of 8%, which form of settlement should Rivera accept?

Should she.

- Accept Bonus Now

- Accept Deferred Bonus in 10 years

Reference no: EM1358985

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