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You are given two choices of retirement plans as following. Assuming a 6 percent opportunity cost, which one do you select? Why? Plan A: equal

You are given two choices of retirement plans as following. Assuming a 6 percent opportunity cost, which one do you select? Why? Plan A: equal annual payments of $10,000 for 10 years starting 35 years from now.

Plan B: a sum of $100,000 payable after 40 years from now. (5 marks)

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