
Under the terms of his salary agreement, president Adams Walters has
an option of receiving either an immediate bonus of $66,000, or a deferred bonus of $84,000 payable in 10 years.
Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept?
Present value of deferred bonus$
Accept Deffered Bonus in 10 years
Accept Bonus Now
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