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SHOW WORK B. You have the option of either receiving (a) $190,000 per year starting today for ten years or (b) you can receive $460,000
SHOW WORK
B. You have the option of either receiving (a) $190,000 per year starting today for ten years or (b) you can receive $460,000 four years from today, $730,000 six years from today and $1,000,000 eight years from today? Your opportunity cost is 10% (compounded semi-annually). Which is better?
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