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A piece of property may be acquired by making an immediate payment of $25,000 and payments of $37,500 and $50,000 three and five years from
A piece of property may be acquired by making an immediate payment of $25,000 and payments of $37,500 and $50,000 three and five years from now respectively. Alternatively, the property may be purchased by making quarterly payments of $5150 in advance for five years. Which alternative is preferable if money is worth 15% compounded semi-annually?
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