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Two alternative investments require the same cash outlay. Their net cash returns are as follows: ALTERNATIVE A: $ 2 0 , 0 0 0 each

Two alternative investments require the same cash outlay. Their net cash returns are as follows: ALTERNATIVE A: $20,000 each year for five years beginning one year from now. ALTERNATIVE B: $10,000 each year for 11 years beginning one year from now. If money is worth 20% compounded annually, which investment alternative should be chosen? What is the size of the current economic advantage of the preferred alternative?

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