A8 please help...... Shuai is 53 years old and has been asked to accept early retirement from his company. The company offered Shuai three alternativecompensation packages to induce Shual to retire:1. $170,000 cash payment to be paid immediately.2. A 17-year annuity of $18,000 beginning immediately.3. A 10-year annuity of $54,000 beginning on July 1 of the year Shuai reaches age 63 (after 10 years).Required:Determine the present value of each alternative, assuming that Shuai is able to invest funds at a 8% rate. Which alternative should hechoose?Note: Round your final answers to nearest whole dollar amount. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. FVAof $1, PVA of $1. FVAD of $1 and PVAD of $1)Alternative12PV3Shuai should choose

The questions pertain to the determination of present value. Present value is the sum of money that…

Answered: Shuai is 53 years old and has been…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 49P

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