A 65 year-old man is retiring and can take either $500,000 in cash or an ordinary annuity that
promises to pay him $50,000 per year for as long as he lives. Which of the following statements is
MOST correct?
A) The higher the interest rate, the more likely the man will prefer the $500,000 lump sum.
B) If the man expects to live more than 10 years, then he will prefer the annuity.
C) If the man is certain the company will not default on its future payments, he should select the
$50,000 per year.
D) Because of the time value of money, the man will always be better off taking the $500,000 up
front.
A
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A) are never used to disseminate information internally B) are poorly equipped for science-based reports C) are not a viable medium for progress reports D) can only be used for reporting analyses to external clients E) can be used for any type of report.
Benefits of business incubators typically include
A. venture capital. B. high security. C. guaranteed profitability. D. shared services. E. free rent.
An unfair labor case is filed with the National Labor Relations Board and goes before an administrative law judge for resolution. If one of the parties is unhappy with the decision of the judge, they may:
a. file an exception b. file a secondary complaint c. file a remedial complaint d. file a case with the U.S. Court of Appeals e. none of the other choices are correct
Assume the state of California plans to amend its personal income tax laws to allow parents to reduce their tax by the cost of infant car seats. Which of the following statements is true?
A. The amendment is intended to change social behavior. B. The amendment creates a tax preference for parents who purchase infant car seats. C. The amendment increases the neutrality of the tax law. D. Both the amendment creates a tax preference for parents who purchase infant car seats and is also intended to change social behavior are true.