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Which form of settlement should hunt accept

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Question - Under the terms of his salary agreement, president Al Hunt has an option of receiving either an immediate bonus of $100,000, or a deferred bonus of $150,000 payable in 5 years. Ignoring tax considerations and assuming a relevant interest rate of 6%, which form of settlement should Hunt accept? (Show your work, please!).

Reference no: EM132180979

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