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Your Green Investment Recommendations subscription is about to expire. You plan to subscribe to the magazine for the rest of your life, and you can

Your Green Investment Recommendations subscription is about to expire. You plan to subscribe to the magazine for the rest of your life, and you can renew it by paying $90 annually, beginning immediately, or you can get a lifetime subscription for $930, also payable immediately. Assuming that you can earn 6.0% on your funds and that the annual renewal rate will remain constant, how many years must you live to make the lifetime subscription the better buy?
a.15.09 years
b.10.58 years
c.9.75 years
d.16.61 years
e.40.08 years
You are offered a chance to buy an asset for $3,700 that is expected to produce cash flows of $750 at the end of Year 1, $1,000 at the end of Year 2, $750 at the end of Year 3, and $4,750 at the end of Year 4. What rate of return would you earn if you bought this asset?
a.18.31%
b.23.53%
c.37.52%
d.16.13%
e.23.99%

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