Question: An obligation can be settled by making a payment of $10 000 now and a final payment of $20 000 in five years. Alternatively, the

An obligation can be settled by making a payment of $10 000 now and a final payment of $20 000 in five years. Alternatively, the obligation can be settled by payments of $1500 at the end of every three months for five years. Interest is 10% compounded quarterly.
Compute the present value of each alternative and determine the preferred alternative according to the criterion (round off to the nearest dollar).

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