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A firm has three different investment options. Option A will give the firm $ 1 0 million at the end of one year, $ 1
A firm has three different investment options. Option A will give the firm $ million at the end of one year, $ million at the end of two years and $ million at the end of three years. Option B will give the firm $ million at the end of one year, $ million at the end of two years and $ million at the end of three years. Option C will give the firm $ million at the end of one year, and nothing thereafter. Which of these options has the highest present value?
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