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Ace Company is budgeting annual payments of $15,000 over the next 10 years. Ace is interested in the option where the present value of the
Ace Company is budgeting annual payments of $15,000 over the next 10 years. Ace is interested in the option where the present value of the annuity is greater: (a) the first payment is made immediately or (b) the first payment is made at the end of the year. Determine the option with the highest present value assuming an interest rate of 10%.
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