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You have the choice between paying $95 for a 4-year magazine subscription today or buying four 1-year subscriptions, which will cost $25, payable at the

You have the choice between paying $95 for a 4-year magazine subscription today or buying four 1-year subscriptions, which will cost $25, payable at the beginning of each year. Assume that the price of the 1-year subscription will remain unchanged and ignore any hassles involved with renewing each year. Which is the better choice if your opportunity cost of funds is 4%? Show your calculations.

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