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Please answer both!!! Two oil wells are for sale. The first will yield payments of $10,700 at the end of each of the next 14
Please answer both!!!
Two oil wells are for sale. The first will yield payments of $10,700 at the end of each of the next 14 years, while the second will yield $5,000 at the end of each of the next 27 years. Interest rates are assumed to hold steady at 8.5% per year over the next 27 years. Which has the higher present value? o the first oil well o the second oil well o they are the same O cannot be determined Additional Materials eBook -/1 POINTS TEAFM2 F.4.040. MY NOTES You are offered a $2,400,000 retirement package to be given in $80,000 payments at the end of each of the next 30 years. You are also given the option of accepting a $1,000,000 lump sum payment now. Interest rates are at 7.9% over the next 30 years. Which is a better option? o the offered annual payments of $80,000 o the lump sum of $1,000,000 O they are the same O cannot be determinedStep by Step Solution
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