Shuai is years old and has been asked to accept early retirement from his company. The company
offered Shuai three alternative compensation packages to induce Shuai to retire:
$ cash payment to be paid immediately.
year annuity of $ beginning immediately.
year annuity of $ beginning on July of the year Shuai reaches age after years
Required:
Determine the present value of each alternative, assuming that Shuai is able to invest funds at a rate.
Which alternative should he choose?
Note: Round your final answers to nearest whole dollar amount. Use tables, Excel, or a financial
calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
