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Jane just inherited the family business, she must decide whether to sell it to an entrepreneur or run it for the last 7 years of
Jane just inherited the family business, she must decide whether to sell it to an entrepreneur or run it for the last 7 years of a lucrative contract. In exchange for the family business, Jane has been offered an immediate payment of $300,000. If Jane chooses to operate the business she will receive payments of $50,000 each year for the remainder of the contract. If the current market rate of interest for Jane is 4%, which option is better for Jane? How do you know?
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