7. Assume that you are given a choice between incurring an immediate outlay of 10,000 and having...

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7. Assume that you are given a choice between incurring an immediate outlay of 10,000 and having to pay 2,310 a year for 5 years (first payment due one year from now): the discount rate is 11 per cent. What would be your choice? Will your answer change if *2,310 is paid in the beginning of each year for 5 years?

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