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

1. How much is the value for alternative 1?

2. How much is the value of alternative 2?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92781723

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