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You can choose one of the following prizes: $100,000 now. $180,000 at the end of five years. $11,400 a year forever. $19,000 for each of

You can choose one of the following prizes:

$100,000 now.

$180,000 at the end of five years.

$11,400 a year forever.

$19,000 for each of 10 years.

$6,500 next year and increasing thereafter by 5% a year forever.

If the interest rate is 12%, which is the most valuable prize and why?

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