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Assume that your classmate has won a prize that pays out $100,000 at the end of 5 years. The opportunity cost of funds is 4%.

Assume that your classmate has won a prize that pays out $100,000 at the end of 5 years. The opportunity cost of funds is 4%. a. Should you offer your classmate $83,000 for the prize? b. Why or why not?

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