You are thinking of retiring. Your retirement plan will pay you either $250,000 immediately on retirement or

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You are thinking of retiring. Your retirement plan will pay you either $250,000 immediately on retirement or $350,000 five years after the date of your retirement. Which alternative should you choose if the interest rate is

a. 0% per year?

b. 8% per year?

c. 20% per year?

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Corporate Finance

ISBN: 978-0133097894

3rd edition

Authors: Jonathan Berk and Peter DeMarzo

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Question Posted: Aug 06, 2014 07:16 AM

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You are thinking of retiring. Your retirement plan will pay you either $250,000 immediately on retirement or

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