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Your local travel agent is advertising an upscale summer vacation package for travel three years from now to Alaska. The package requires that you pay
Your local travel agent is advertising an upscale summer vacation package for travel three years from now to Alaska. The package requires that you pay $15,000 today, $10,000 one year from today, $5,000 two years from today, and a final payment of $5,000 on the day you depart three years from today. What is the cost of this vacation in today's dollars if the discount rate is 7.5 percent? Select one: O a. $38,225 O b. $32,654 C. $35,000 d. $25,508 e. $30,282
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