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2) a) b) Jay's brother has offered to give him either $5,000 today or $7,000 in 4 years. If the opportunity cost of both options

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2) a) b) Jay's brother has offered to give him either $5,000 today or $7,000 in 4 years. If the opportunity cost of both options is 7% per year, which option should Jay choose? At what opportunity cost will Jay be indifferent between the two options? This homework includes problems from Time Value of Money. Please draw a timeline for each problem, clearly mark all the inputs, and indicate the unknown component on the timeline

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