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You are presented with a choice: Option 1) Receive $270 today or Option 2) Receive $100 today, an additional $100 in one year, and an
You are presented with a choice: Option 1) Receive $270 today or Option 2) Receive $100 today, an additional $100 in one year, and an additional $100 in two years (for $300 total). Assume the discount rate is 10%. Based on this information, which option yields the larger PDV? Option 1 Option 2 The PDVs are equal There is not enough information to answer the
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