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Shuai is 55 years old and has been asked to accept early retirement...

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Accounting

Shuai is 55 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:
$180,000 cash payment to be paid immediately.
20-year annuity of $16,000 beginning immediately.
10-year annuity of $50,000 beginning on July 1 of the year Shuai reaches age 65(after 10 years).
Required:
Determine the present value of each alternative, assuming that Shuai is able to invest funds at a 7% 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 $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
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