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QUESTION 12 Given a choice between $1,000 a year for 8 years with the first payment paid today vs. a single lump sum payment of

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QUESTION 12 Given a choice between $1,000 a year for 8 years with the first payment paid today vs. a single lump sum payment of S6500 today, assuming the market rate is 5%, a rational investor would Be indifferent regarding the choice Have no idea what to do Prefer the lump sum of $6500 today Prefer $1,000 a year

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