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Consider the following options: You can receive $12,500 now You can receive $6,250 a year for six years You can receive one payment of $87,000

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Consider the following options: You can receive $12,500 now You can receive $6,250 a year for six years You can receive one payment of $87,000 at the end of year seven Required: a. Which alternative would you choose? Assume you can earn 9% annually b. If the return changed to 4%, would your answer change? Explain

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