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You have two investment options. Option 1) a $50,000 annual perpetuity Option 2) a $70,000 annual annuity Both plans require first payment one year from
You have two investment options.
Option 1) a $50,000 annual perpetuity
Option 2) a $70,000 annual annuity
Both plans require first payment one year from today. At what discount rate will you be indifferent between these two options?
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