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Exercise If the interest rate is 5% which is the most valuable? a. b. C. d. e. 1,000,000 yen now. 1,300,000 at the end

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Exercise If the interest rate is 5% which is the most valuable? a. b. C. d. e. 1,000,000 yen now. 1,300,000 at the end of five years. 48,000 a year forever. (starting one year from now) 135,000 for each of 10 years. (starting one period from now) 36,000 next year and increasing thereafter by 1% a year forever.

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Option Present Value Yen a 1000000 Already in present value b 1300000 1 0055 97087379 c 48000 005 96... blur-text-image

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