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Consider the following options: You can receive $10,000 now You can receive $4,800 a year for seven years You can receive one payment of $62,000

Consider the following options:

You can receive $10,000 now

You can receive $4,800 a year for seven years

You can receive one payment of $62,000 at the end of year seven

Required:

  1. Which alternative would you choose? Assume you can earn 13% annually
  2. If the return changed to 7%, would your answer change? Explain.

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