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You work in the corporate finance department of Woodford Reserve Distillery. The company has an extra $100,0000, and you are asked to invest this amount.

You work in the corporate finance department of Woodford Reserve Distillery. The company\ has an extra $100,0000, and you are asked to invest this amount. You talk to Truist Bank, and\ they offer two treasury options: [20 points]\ Option A Deposit $100,000, and you get an annual payment of $5,000 for three years at the\ end of each year and $7,000 for an additional ten years starting at the end of the fourth year.\ Option B Deposit $100,000, and you get a lump-sum payment of $120,000 at the end of\ year 10.\ For both options you get your original $100K pay at the end of 13 years\ \ a. If the company discount rate is 5%, which option would you prefer?\ b. Using What if Analysis, at what discount rate would your choice change?\ c. If the Company discount rate is 12%, what is the most you would pay for Options A & B?\ Explain why.

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