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2. As a winner of a lottery you can choose one of the following prizes: a. OMR 1,000 now. b. OMR 1,500 at the end

2. As a winner of a lottery you can choose one of the following prizes:

a. OMR 1,000 now.

b. OMR 1,500 at the end of 3 years.

c. OMR 140 a year forever, starting in one year.

d. OMR 200 for each of the next 15 years, starting in one year.

If the time value of money is 9 per cent, which is the most valuable prize?

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