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5. A venture capitalist is offered two opportunities requiring the same initial investment, but only one can be chosen. Help the investor by finding the

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5. A venture capitalist is offered two opportunities requiring the same initial investment, but only one can be chosen. Help the investor by finding the value of each opportunity in today's dollars. The investor assumes a general earnings rate of 4.8% compounded continuously. 25pts a) Option A will return a constant $60000 yearly in a continuous manner for 15 years. b) Option B will return $42000 in a continuous stream that will also grow at 6% continuously for 15 years, so bus payment function f(t) = 42000e c) Which option should the investor choose, based on the best total value

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