You just won a prize that comes with two payout choices. The first option is to get

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You just won a prize that comes with two payout choices. The first option is to get $100,000 right now and nothing hereafter. The second option is to get $94,000 right now and $10,000 three years from now (and nothing after that). If your discount rate is 8%, which should you take?

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Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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