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You have some property for sale and have received two offers. The first offer is for $ 7 0 , 0 0 0 today in

You have some property for sale and have received two offers. The first offer is for $

70, 000

today in cash. The second offer is the payment of $

15, 000

today and an additional guaranteed $

54, 000

two years from today. If the applicable discount rate is

8

percent, which offer should you accept and why?

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