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You have three investment opportunities that will pay you the following: a. $60,000 at the end of year 1 and 2, $90,000 at the end
You have three investment opportunities that will pay you the following: a. $60,000 at the end of year 1 and 2, $90,000 at the end of years 3 and 4 and $150,000 at the end of year 5. b. $40,000 for each of the next 10 years. c. $20,000 forever. Assuming you can earn 5% with each investment which of these three opportunities would you take?
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