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A piece of property may be acquired by making an immediate payment of $125,000 and payments of $375,000 and $350,000 three and five years from

A piece of property may be acquired by making an immediate payment of $125,000 and payments of $375,000 and $350,000 three and five years from now respectively. Alternatively, the property may be purchased by making quarterly payments of $40,000 in advance (beginning of quarter) for five years. Find the NPV of the two alternatives. Which alternative is preferable if money is worth 12.2% compounded semi-annually?

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