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You just won a prize that comes with two payout choices. The first option is to get $100,000 right now and nothing hereafter. The second
You just won a prize that comes with two payout choices. The first option is to get $100,000 right now and nothing hereafter. The second option is to get $94,000 right now and $10,000 three years from now (and nothing after that). If your discount rate is 8%, which should you take?
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