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a. Assume an interest rate of 10%. What is the net present value of building a relationship with Chris today? (Notice that the costs of
a. Assume an interest rate of 10%. What is the net present value of building a relationship with Chris today? (Notice that the costs of kindling a relationship today are certain, but the benefits are uncertain.) $1,000 0-$200 O $1,200 O $200 b. Assuming you are risk-neutral, and considering only your answer in part a, you with Chris at this time. initiate a relationship c. What is the net present value of waiting until the presidency is decided to build a relationship with Chris. (Note that both the costs and benefits of kindling a relationship are uncertain at this point but that the two will be certain in one year.) $490.91 O$545.45 $654.55 $909.09 d. Based on your answers in parts a and c, you should initiate a relationship with Chris
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