(Answered) Question sally hamilton has performed well as chief

Accounting

Question: Sally Hamilton has performed well as chief financial officer of the Maxtech Computer Company and has earned a bonus. She has a choice among the followig three bonus plans:

1. A $50,000 cash bonus paid now.

2. A $10,000 annual cash bonus to be paid each year over the next six years, with the first $10,000 paid now.

3. A three-year $22,000 annual cah bonus with the first payment due three years from now.

Sally can earn a 6% annual return on her investments.

Evaluate the three alternative bonus plans, posting your questions and insights for the class.

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