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1. $7,550 a year at the end of each of the next 8 years 2. $48,350 (lump sum) now 3. $100,050 (lump sum) 8 years
1. $7,550 a year at the end of each of the next 8 years 2. $48,350 (lump sum) now 3. $100,050 (lump sum) 8 years from now Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value? Would your preference change if you used a 10% discount rate
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