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You have been offered the following choice: Choice 1: A series of two payments, $250,000 paid one-year from today, and an additional $250,000 payment 5
You have been offered the following choice:
Choice 1: A series of two payments, $250,000 paid one-year from today, and an additional $250,000 payment 5 years from today.
Choice 2: A payment of $50,000 to be received immediately and $50,000 to be received annually for the remainder of your life.
Which would you choose assuming a discount rate of 11%?
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