John Roberts is 51 years old and has been asked to accept early
retirement from his company. The company has offered John three
alternative compensation packages to induce John to retire: (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)
1. $187,000 cash payment to be paid immediately.
2. A 16-year annuity of $21,000 beginning immediately.
3. A 10-year annuity of $57,000 beginning at age 61.
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