Determine the present value

Assignment Help Accounting Basics
Reference no: EM132032708

Question - John Roberts is 54 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. $170,000 cash payment to be paid immediately.

2. A 10-year annuity of $25,000 beginning immediately.

3. A 10-year annuity of $65,000 beginning at age 64.

Required: Assuming that John is able to invest funds at a 9% rate, determine the present value.

Reference no: EM132032708

Questions Cloud

Determine the transaction the firm should conduct : Determine the transaction the firm should conduct on January 31 to set up the hedge.
How much should he request as withdrawal : A retiree needs $15,000 in cash for some upcoming expenses. How much should he request as a withdrawal?
How did the law effect vaccination policy : What are the main determinants in health disparities and how can these be modified to improve health status and create health equity in society?
Calculate ringgolds net income : Ringgold Corporation has outstanding at December 31, 2014, 48,020 shares of $18 par value, Calculate Ringgold's 2014 net income
Determine the present value : John Roberts is 54 years old and has been asked to accept early retirement from his company. Determine the present value
Explain the effects of quarantine on the military : Focus on a past case of quarantine, the effects of quarantine on the military or the effectiveness of state or federal quarantine laws.
Documenting the outcomes of the sustainability policy : 1. List three important factors to be considered when documenting the outcomes of the sustainability policy and write their importance.
Recommend to the ceo of google : Given the increasing regulation of the Internet and e-mail by the government of China, recommend to the CEO of Google whether the company
Constructs of the transtheoretical model : Compare (similarities and differences) the theoretical constructs of the Transtheoretical Model and the Health Belief Model.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the adjusting entry for december

What is the appropriate reporting category for this investment? Why?

  Prepare the statement of partners capital at december

Net income for Levin-Tom partnership for 2012 was $125,000. Prepare the statement of partners' capital at December 31, 2012

  Amount of liability for compensated absences

M estimated that there were 200 vacation days available at December 31, 2009. M's employees earn an average of $150 per day. In its December 31, 2009, balance sheet, what amount of liability for compensated absences is M required to report?

  Prepare a table to summarize the preceding transactions

Prepare a table to summarize the preceding transactions as they affect the accounting equation.

  Compute operating income using activity-based costing system

Ayala Inc. has conducted following analysis related to its product lines,For each product line, compute operating income using the activity-based costing system

  What is net present value using these alternative estimates

Calculate the net present value of the project. (For all net present value calculations, if the net present value is negative, show the amount in (parenthesis). Round all answers to 0 decimal places.)

  Shine corporation purchased 30 percent of the common stock

shine corporation purchased 30 percent of the common stock of ash corporation on january 1 2007 at 28000 in excess of

  Purchases of merchandise problem

When purchases of merchandise are made for cash, the transaction:

  Journalize and post adjusting entries

Journalize and post adjusting entries. Prepare an adjusted trial balance. Prepare an income statement and a retained earnings

  How would the wording in the standard report be modified

Scope Limitations. D. Brady has been engaged as the auditor of Patriot Company and is currently planning the year-end physical inventory counts.

  Compute the breakeven point in units

Compute the breakeven point in units, assuming the sales mix is 3 units of X for each 5 units of Y

  Ramifications of raising taxes for wealthy

What are your thoughts on the three proposals outlined above, and please feel free to suggest anything that you feel should also be considered in reducing the deficit.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd