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A businessman wants to buy a truck. The dealer offers to sell the truck for either (i) $130,000 now, or (ii) five yearly payments of

A businessman wants to buy a truck. The dealer offers to sell the truck for either (i) $130,000 now, or (ii) five yearly payments of $35,000 at the end of each year. If the businessman does not have enough cash but can get a loan from the bank at 12% interest rate, which offer should he choose from the dealer?

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