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A prize raffle will be paid out as 5,000 dollars today (option A) or as 7,500 dollars 5 years from now. Given the appropriate discount
A prize raffle will be paid out as 5,000 dollars today (option A)
or as 7,500 dollars 5 years from now. Given the appropriate discount rate of 7.15 percent (option B)
Which is better and why?
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