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You are comparing two investments options that each pay 6 percent interest. Both options will provide you with $ 1 2 , 0 0 0
You are comparing two investments options that each pay percent interest. Both options will provide you with $ of income. Option A pays $ the first year followed by two annual payments of $ each. Option B pays three annual payments of $ each. Which of the following statements is correct given these two investments options? Assume a possitive discount rate. Which option has a higher present value? Show the calculations of the present value for both options.
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