Question

Suppose that, in their divorce settlement, Ashton Kutcher offers Demi Moore $10 million spread evenly over 10 years, but she instead demands $5 million now. If the appropriate discount rate is 8 percent, which alternative is better for Ashton and which for Demi? What if the discount rate is 20 percent?



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  • CreatedNovember 18, 2014
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