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Carla has decided to purchase a $30,000 car. She can either liquidate some of her investments and pay cash or accept the dealer's terms of

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Carla has decided to purchase a $30,000 car. She can either liquidate some of her investments and pay cash or accept the dealer's terms of $7,000 down and successive payments of $10,000, $9,000 and $8,000 at the end of each of the next three years. which choice should Carla make if she can earn 7% compounded semiannually on he investment? What option should Carla choose? In current dollars, how much is the economic advantage of the preferred alternative? (6 marks)

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