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Suppose you are selling a piece of furniture to a friend who can t afford to pay you upfront but offers to pay you in
Suppose you are selling a piece of furniture to a friend who cant afford to pay you upfront but offers to pay you in monthly installments until it is paid off.
Which of the following is not information that you need to calculate the present value of this offer?
multiple choice
The interest rate you could earn elsewhere
The time period until the furniture is paid off
The future value of the payment installments
The risk aversion of your friend
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