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4. You have been offered the following opportunity: receive a tax 'forbearance credit of $10,000 today, and in return, you must make higher tax payments
4. You have been offered the following opportunity: receive a tax 'forbearance credit of $10,000 today, and in return, you must make higher tax payments of $1,000 per year for 15 years. The first of the annual payments will come in one year's time. This is almost like a loan with a benefit today and payments going forward. What is the rate of return on this transaction
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