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A man can sell his business for $ 8 0 0 , 0 0 0 cash or for $ 1 2 5 , 0 0
A man can sell his business for $ cash or for $ plus $ at the end of each year for years.
a Find the present value of the annuity that is offered if money is worth compounded annually.
b If he takes the $ spends $ of it and invests the rest in a year annuity at compounded annually, what size annuity payment will he receive at the end of each year?
c Which is better, taking the $ and the annuity or taking the cash settlement?
a Find the present value of the annuity that is offered if money is worth compounded annually.
$ Type an integer or decimal rounded to the nearest cent as needed.
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