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undefined As winner of a breakfast cereal competition, you can choose one of the following prizes: a. If the interest rate is 20%, find the
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As winner of a breakfast cereal competition, you can choose one of the following prizes: a. If the interest rate is 20%, find the PV for each of the prizes. (Do not round intermediate calculations. Round your answer to 2 decimal places.) PV $150000 now. $185000 at the end of five years. $13900 a year forever. $21500 for each of 10 years. $7000 next year and increasing thereafter by 6% a year forever. b. Which is the most valuable prize? $150,000 now. $185,000 at the end of five years. $13,900 a year forever. $21,500 for each of 10 years. $7,000 next year and increasing thereafter by 6% a year foreverStep by Step Solution
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