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Question 3 12.5 pts You are comparing two investment options that each pay 4 percent interest, compounded annually. Both options will provide you with $18,000

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Question 3 12.5 pts You are comparing two investment options that each pay 4 percent interest, compounded annually. Both options will provide you with $18,000 of total income. Option A pays $4,000 the first year followed by two annual payments of $7,000 each. In addition, all payments are received at the beginning of each year. Option B pays three annual payments of $6,000 each (payable at the end of each year). Answer the following questions, and assume a positive discount rate for both. 1. Show the calculations of the present value for both Option A and Option B. 2. Which investment option is best for you. Option A or Option B

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