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Jeff has been offered the option to receive cash at the end of each year over a 5 year period, as more fully described as
Jeff has been offered the option to receive cash at the end of each year over a 5 year period, as more fully described as follows: Year! Year II Year III Year IV Year V $10,000.00 $80,000.00 $10,000.00 $100,000.00 $50,000.00 Total $250,000.00 I In evaluating all investment decisions, Jeff utilizes an interest rate of 5%. Required: On the basis of the above, what amount of cash should Jeff be willing to accept today as an alternative to the option presented to him above
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