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1. As winner of a recruiting competition, you can choose one of the prizes given below. If the interest rate is 10%, which prize do
1. As winner of a recruiting competition, you can choose one of the prizes given below. If the interest rate is 10%, which prize do you think is worth the most?
a) $100,000 today
b) $150,000 at the end of five years
c) $5,000 next year and increasing thereafter by 4.5% a year forever
d) $15,000 each year of 10 years
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