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Mr. Ross has been awarded a bonus for his outstanding work. His employer offers him a choice of a lump-sum of $8,000 today, or an

Mr. Ross has been awarded a bonus for his outstanding work. His employer offers him a choice of a lump-sum of $8,000 today, or an annuity of $2,500 a year for the next four years. Which option should Mr. Ross choose if his opportunity cost is 8%?

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