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Mr Lim has been awarded a bonus for his outstanding work. His employer offers him a choice of a lump-sum of $5,000 today, or an
Mr Lim has been awarded a bonus for his outstanding work. His employer offers him a choice of a lump-sum of $5,000 today, or an annuity of $1,250 a year for the next five years. Which option should Mr. Knowitall choose if his opportunity cost is 9 percent
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