Question
Gina Vitale has just contracted to sell a small parcel of land that she inherited a few years ago. The buyer is willing to pay
Gina Vitale has just contracted to sell a small parcel of land that she inherited a few years ago. The buyer is willing to pay $19,453 now, or the buyer will make a series of payments starting now and continuing at annual intervals shown in the following table . Because Gina doesn't really need the money today, she plans to let it accumulate in an account that earns 5% annual interest. Given her desire to buy a house five years after selling the lot, she decides to choose the payment alternativelong dasheither the lump sum or the mixed streamlong dashthat provides the higher future value at the end of 5 years. Which alternative will she choose?
td i Data Table Vi an sit (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Mixed Stream Beginning of year Cash Flow 0 $3,000 $2,000 2 $10,000 3 $3,000 4 $6,000 1 Print DoneStep by Step Solution
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