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You just sold a piece of property. The buyer offers you a choice between accepting $100,000 immediately followed by payments of $50,000 at the end
You just sold a piece of property. The buyer offers you a choice between accepting $100,000 immediately followed by payments of $50,000 at the end of each year for fifteen years (#1). Alternatively, you could receive $150,000 now and payments of only $43,500 annually for fifteen years (#2). Which alternative would you prefer if your required rate of return is eight percent? a. b. If your required rate of return is thirteen percent? C. At what required rate of return would these two investments have the same present value
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