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A contract offers $20,000 immediately and $60,000 in six years (Alternative 1) or $13,500 at the end of each of the next six years (Alternative
A contract offers $20,000 immediately and $60,000 in six years (Alternative 1) or $13,500 at the end of each of the next six
years (Alternative 2). If money is worth 4%, which offer is preferable?
The preferred alternative is
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