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An investor holds a time-payment purchase contract on some machine tools. The contract call for the payment of 6,800 at the end of each month
An investor holds a time-payment purchase contract
on some machine tools. The contract call for the
payment of 6,800 at the end of each month for a 5-
year period. The first payment is due in one month.
He offers to sell you the contact for 330,680 cash
today. If you otherwise can make 1% per month on
your money, would you accept or reject the
investor's offer?
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