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Mary and Penny were equal partners in the ownership of a gift shop but after several disagreements, have decided to terminate the partnership. Mary offers

Mary and Penny were equal partners in the ownership of a gift shop but after several disagreements, have decided to terminate the partnership. Mary offers to purchase Pennys interest by paying either $20,000 today or $35,000 five years from today. If Pennys opportunity cost is 12% annually (APY = 12%), which options do you recommend Penny to choose? And why?

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