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Your father is about to retire. His firm has given him the option of retiring with a lump sum of $50,000 or an annuity of
Your father is about to retire. His firm has given him the option of retiring with a lump sum of $50,000 or an annuity of $8,000 for ten years. Which is worth more now, if the discount rate is (1) 6%, (2) 18%?
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