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In exchange for a $20,000 payment today, a well-known company will allow you to choose one of the alternatives shown in the following table: Your
In exchange for a $20,000 payment today, a well-known company will allow you to choose one of the alternatives shown in the following table:
Your opportunity cost is 11%.
A.Find the value today of each alternative.
B.Are all the alternatives acceptable _____ that is, worth at least $20,000 today?
c.Which alternative, if any, will you take?
A.The present value of Alternative A is $_______(Round to the nearest cent.)
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