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1) What is the total amount that the company should pay in Option B? (30 points) 2) Assuming Option B, the company is still thinking
1) What is the total amount that the company should pay in Option B? (30 points)
2) Assuming Option B, the company is still thinking in making annual payments, at the end of the year with a growth of 0.25% yearly. The annual interest rate would still be the same 3.5%.
What is the difference of money between this action and what you calculated in 1) ?
What is the present value of the difference?
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