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Your parents offered to pay you either a. 1000 today, or b. 1090 in one year, or c. 1200 in two years. The cash flows

Your parents offered to pay you either

a. 1000 today, or

b. 1090 in one year, or

c. 1200 in two years.

The cash flows are certain, they are guaranteed and you do not need the money immediately.

Which of the payments would you prefer? Assume an interest rate of 10%

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