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You have the option to join of the two contests, probability of wining and cost in both contests are exactly the same but the reword
You have the option to join of the two contests, probability of wining and cost in both contests are exactly the same but the reword is are different:
Contest A will give a reward of $3000 a year for next 10 years at the end of each year.
Contest B will give a reward once at the end of year ten which is $50,000.
If your discount rate is 11%, which of the two contests would you choose? (Show your answer)
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