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A contract offers $35000 immediately and $60000 in eight years (Alternative 1) or $6000 at the end of each of the next eight years (Alternative
A contract offers $35000 immediately and $60000 in eight years (Alternative 1) or $6000 at the end of each of the next eight years (Alternative 2). If money is worth 4%which offer is preferable? The preferred alternative is alternative 1 or alternative 2?
The preferred alternative is
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