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Winny has a contract to sell a necklace for $70,000 and payment is to be received at the end of two years. The necklace costs
Winny has a contract to sell a necklace for $70,000 and payment is to be received at the end of two years. The necklace costs $60,000 today and could be sold for this amount. The interest rate is 10% per annum andWinnydoes not want to give up the necklace for two years. Explain, with computations, whether the contract is a goodfinancialarrangementforWinny.
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