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Suppose you have two payment options: Option Near, a $10,000 annuity for three years, with the first cash flow one year from today, or Option

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Suppose you have two payment options: Option Near, a $10,000 annuity for three years, with the first cash flow one year from today, or Option Far, a $10,000 annuity for six years with the first cash flow ten years from today. Assuming an interest rate of 7.0%, which set of cash flows has a greater present value? Option Far has a greater PV of $60,000 vs. Option Near PV of $30,000. Option Near has a greater PV of $26,243.16 vs. Option Far PV of $25,926.82. Option Far has a greater PV of $26,243.16 vs. Option Near PV of $25,926.82. O Option Near and Option Far have the same PV of $25,926.82

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