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(CHAPTER 6) You have two options. - Option #1 is receiving $7,000 in one year, then a 4.4% higher dollar amount one year after that,
(CHAPTER 6) You have two options. - Option #1 is receiving \$7,000 in one year, then a 4.4\% higher dollar amount one year after that, again a 4.4\% higher amount of money another year after that, and so on forever. These amounts of money would be received by you, your children, your grandchildren, and all your future heirs. - Option #2 is instead receiving an equivalent amount of money in one lump-sum amount today, and nothing else in any future years. What is the dollar amount of this Option #2? You also know that the appropriate discount rate is 12.3%. Increase decimal places for any intermediate calculations from 2 to 6 or even higher, and only round your final answer to TWO decimal places Do NOT use "\$" in your
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