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I got a deal for you! If you lend me 200,000 USD today; I promise to pay you back in 30 years in annual installments
I got a deal for you! If you lend me 200,000 USD today; I promise to pay you back in 30 years in annual installments of USD 5,000,starting 10 years from today. Opportunity cost is 6%. Will you lend me? Hint: Compute the PV of all CFs and compare with 200,000 USD.
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