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Bridgeport Inc. has $652,920 to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides $97,304 at the
Bridgeport Inc. has $652,920 to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides $97,304 at the end of each year for 10 years, and the other is to receive a single lump-sum payment of $2,027,870 at the end of the 10 years. Which alternative should Bridgeport select? Assume the interest rate is constant over the entire investment.
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