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You are considering two investments. The first pays $40,000 at the end of the seventh years. The second investment pays $20,000 at the end of

You are considering two investments. The first pays $40,000 at the end of the seventh years. The second investment pays $20,000 at the end of the sixth years and another $20,000 at the end of the eighth year. The appropriate effective annual interest rate is 4% for both investments. Which investment is worth more today?

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