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Ms. Woodhouse is selling her property and has received two offers: Option 1: a cash payment of $220,000, or Option 2: a payment of $240,000
Ms. Woodhouse is selling her property and has received two offers:
Option 1: a cash payment of $220,000, or Option 2: a payment of $240,000 one year from now.
Which offer should she accept, given that she can invest funds today at an interest rate of 6 percent?
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