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Your financial planner offers you two different investment plans. Plan X is an annual perpetuity of $ 7 0 , 0 0 0 per year.

Your financial planner offers you two different investment plans. Plan X is an annual perpetuity of $

70, 000

per year. Plan Y is an annuity for

15

years and an annual payment of $

94, 000 .

Both plans will make their first payment one year from today. At what discount rate would you be indifferent between these two plans?

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