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You have some property for sale and have received two offers. The first offer is for $189,000 today in cash. The second offer is the
You have some property for sale and have received two offers. The first offer is for $189,000 today in cash. The second offer is the payment of $100,000 today and an additional $100,000 two years from today. If the applicable discount rate is 8.75 percent, which offer should you accept and why? A. You should accept the $189,000 today because it has the higher net present value. B. You should accept the $189,000 today because it has the lower
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