Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

s lust can be saved and resumed at any point until time has expired. The timer w

ID: 2621324 • Letter: S

Question

s lust can be saved and resumed at any point until time has expired. The timer will continue to run if you leave the test Remaining Time: 1 hour, 34 minutes, 59 seconds. Question Completion Status: Close Window Moving to another question will save this response Question 36 of 40 uestion 36 5 points Save Answes Excel Precision Inc. recently lost a lawsuit in a business dispute. The judge ordered the company that the company will lose again and still be required to pay the $200,000 However, by appealing. Excel moves the $200,000 payment to year 2 interest rate is 9 percent, what decision should the company make? to pay the plaintiff $200,000 in on year. Excel's attorney advises the company to appeal the ruling it is likely , in addition to attorney fees of $15,000 for the extra work. i the T T T ? Paragraph Anal 3 (12pt)EE T' T Path p 47 PM

Explanation / Answer

Option 1: Amount to be paid today = $200,000

Option 2: Payment after 2 years = 200,000+15000 =$215,000

Present Value = $215000*PVF(9%, 2y)

= 215000*0.842

=$181,030

Hence, the company should file the appeal and pay 2 years later