Your mom is thinking of retiring. Her retirement plan will pay her either $100,000 immediately on retirement
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Your mom is thinking of retiring. Her retirement plan will pay her either $100,000 immediately on retirement or $140,000 five years after the date of her retirement.
Which alternative should she choose if the interest rate is
a. 0% per year?
b. 8% per year?
c. 20% per year?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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