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You are indifferent between a project paying $2000 per year, starting today, for 20 years or in a project paying a constant cash flow per
You are indifferent between a project paying $2000 per year, starting today, for 20 years or in a project paying a constant cash flow per year, starting one year from today, for 20 years. Both options have equal present values. The applicable discount rate is 6.5 percent.
By how much annual payments between the two options differ? (Show calculations)
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