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Allison has a golden goose that will lay an egg every year until forever. The first egg will be out next year, and each egg
Allison has a golden goose that will lay an egg every year until forever. The first egg will be out next year, and each egg is worth ( $ 500 ). Allison's friend, Eric, offers a price to buy the golden goose from Allison today. The interest rate is ( 10 % ). From the cost-benefit analysis, under which of the following offers would Allison be willing to sell the goose to Eric? A. ( $ 4,500 ) B. ( $ 5,500 ) C. Allison would want to sell it to Eric with both ( $ 4,500 ) and ( $ 5,500 ). D. Allison wouldn't want to sell it anyway since the eggs would laid out forever.
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