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Your uncle offers you the choice of $110,000 in 10 years or $49,000 today. Calculate the present value of $110,000 if the money is discounted
Your uncle offers you the choice of $110,000 in 10 years or $49,000 today.
Calculate the present value of $110,000 if the money is discounted at 8 percent.
Which should you choose, $49,000 today or $110,000 in 10 years?
Which would you choose if you had to wait 12 years?
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