Would you prefer to receive 5 annual payments of $ 200 or 6 annual payment of $

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Would you prefer to receive 5 annual payments of $ 200 or 6 annual payment of $ 180 if the interest rate is 10% per year?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Question Posted: May 20, 2013 06:49 AM

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Would you prefer to receive 5 annual payments of $ 200 or 6 annual payment of $

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Year PV Factor 10 Option1 5 Years Option2 6 Years Inflow PV Inflow Inflow PV Inf...View the full answer

Microeconomics An Intuitive Approach with Calculus

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