Business, 22.02.2020 05:19 mitalichavez1

You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $200,000 today or receive payments of $1,400 a month for 20 years. You can earn 6 percent on your money.
1. Which option should you take and why?
A. You should accept the payments because they are worth $209,414 to you today. B. You should accept the payments because they are worth $247,800 to you today. C. You should accept the payments because they are worth $336,000 to you today. D. You should accept the $200,000 because the payments are only worth $189,311 to you today. E. You should accept the $200,000 because the payments are only worth $195,413 to you today.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:30, danielmartinez024m

What is the most important type of decision that the financial manager makes?

Answers: 2

continue

Business, 21.06.2019 22:30, petunia6548

True or false: banks are required to make electronically deposited funds available on the same day of the deposit

Answers: 2

continue

Business, 22.06.2019 10:10, travisvb

Ursus, inc., is considering a project that would have a five-year life and would require a $1,650,000 investment in equipment. at the end of five years, the project would terminate and the equipment would have no salvage value. the project would provide net operating income each year as follows (ignore income taxes.):

Answers: 1

continue

Business, 22.06.2019 13:20, kaylarenee05080

In order to be thoughtful about the implementation of security policies and controls, leaders must balance the need to reduce with the impact to the business operations. doing so could mean phasing security controls in over time or be as simple as aligning security implementation with the business’s training events.

Answers: 3

continue

You know the right answer?

You are the beneficiary of a life insurance policy. The insurance company informs you that you have...