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A rich uncle allows you to stipulate which of two ways you receive your inheritance: a. $850,000 one year after his death or b. $250,000
A rich uncle allows you to stipulate which of two ways you receive your inheritance:
a. $850,000 one year after his death or
b. $250,000 on his death and $200,000 each year at the end of the first, second and third years following his death. If money is worth 10%, what is the relative advantage of the more attractive alternative?
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