What lump-sum at employment date

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Question - Garland Inc. offers a new employee a lump-sum signing bonus at the date of employment, June 1, 2016. Alternatively, the employee can take $10,000 each June 1 for five years, beginning in 2020. Assuming the employee's time value of money is 9% annually, what lump-sum at employment date would make him indifferent between the two options?

Reference no: EM132477998

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