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your crazy aunts give you five possible beaters. assume that your discount rate is 1 2 . 5 % ( annual compounding ) . which

your crazy aunts give you five possible beaters. assume that your discount rate is 12.5%(annual compounding). which choice has the greatest present value? a. a perpetual stream of annual payments starting at $500 in one year and increasing at 5% thereafter b. five annual payments of $28,000- the first payment occurs one year from today c. a lump sum payment of 25,000 at the end of 10 years d. a lump sum payment of 10,000 today e. a perpetual stream of annual payments of $1000 starting in one year

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