His firm has given him the option of retiring

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Reference no: EM131300268

Your father is about to retire. His firm has given him the option of retiring with a lump sum of $20,000 (Option A) or receiving $2,500 a year for the next 10 years (starting a year from now) – Option B. Which is worth more now, if the discount rate is 4%?

Reference no: EM131300268

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