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When Pacific Inc. bld for a project with the government, the company was offered the following two payment options: Option ( A ) : A
When Pacific Inc. bld for a project with the government, the company was offered the following two payment options:
Option A: A payment of $ at the end of years, which is the scheduled completion time for the project.
Option B: $ paid upfront at the beginning of the project and the balance payment in years.
If the two payments are financially equivalent and the interest rate is compounded semiannually, calculate the balance payment offered in OptionB
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