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Posted on Jul 28, 2024

You just won a prize that comes with two payout choices. The first option is to get $ 1 0 0 , 0 0 0

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 $

92, 000

right now and $

11, 000

three years from now

(

and nothing after that

) .

If your discount rate is

10 %,

which should you take?

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