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Time value comparisons of single amounts In exchange for a $23,000 payment today, a well-known company will allow you to choose one of the alternatives
Time value comparisons of single amounts In exchange for a $23,000 payment today, a well-known company will allow you to choose one of the alternatives shown in the following table. Your opportunity cost is 9% P5-16 Alternative Single amount $28,500 at end of 3 years $54,000 at end of 9 years $160,000 at end of 20 years A C a. Find the value today of each alternative. b. Are all the alternatives acceptable? That is, c. Which alternative, if any, will you take? they worth $23,000 today? are
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