Question
Annuity vs. Lump Sum At what interest rate (as an EAR) would you be indifferent between the following two choices: 1) receiving $10,000 per year,
Annuity vs. Lump Sum
At what interest rate (as an EAR) would you be indifferent between the following two choices: 1) receiving $10,000 per year, starting 1 year from today, for a total of 2 payments (the last payment occurs 2 years from today in that case)... OR, 2) receiving $20,679 exactly 2 years from today? Answer: _____%
Margin of error for correct responses: +/- .03%.
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick, Ayako Yasuda
3rd Edition
1119490111, 978-1119490111
