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Problem 6 - Support the answer with calculations CloudyClothes Ltd. offers John two possible ways to pay a machine. The first one is to pay

Problem 6 - Support the answer with calculations

CloudyClothes Ltd. offers John two possible ways to pay a machine. The first one is to pay $100,000 today, while the second is to pay $125,000 at the end of 5 years. Taking into account that the appropriate discount rate for the 5-year period is 6%, which payment should John make? Why?

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