[Solved] Top of Form 3. You have just been offered the job of your dreams and are preparing to leave your old firm. You have accumulated a deferred payment
Question: Top of Form
3. You have just been offered the job of your dreams and are preparing to leave your old firm. You have accumulated a deferred payment account of $500,000 that you can take as a lump sum or in 10 equal installments over the next 10 years. Your current tax bracket is 28%, the $500,000 would be taxed at 32%. The deferred account currently earns 6% and you think you could invest the money at 6.75%.
- What is the value of each option?
- Which would you take?
Deliverable: Word Document 