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The owner of a development site is considering an offer from a parking lot operator to rent the parcel for the next five years, while
The owner of a development site is considering an offer from a parking lot operator to rent the parcel for the next five years, while the development is being planned and approved. The operator has offered to pay $65,000 today or an annuity of $20,000 at the end of each of the next 5 years. Which payment method should the site owner accept if her required rate of return is 15 percent?
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