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Your annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you six months' salary now. Option 2 pays you and your heirs $6,000 per year forever (first payment at the end of this year). If your required return is 11%, what option should you choose? Assume you care about your family as much as you care about yourself.

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Financial Management, Finance

Category:- Financial Management
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