Question: Buffalo Inc. has $ 6 7 8 , 0 5 0 to invest. The company is trying to decide between two alternative uses of the

Buffalo Inc. has $678,050 to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides $89,974 at the end of each year for 12 years, and the other is to receive a single lump-sum payment of $2,128,010 at the end of the 12 years. Which alternative should Buffalo select? Assume the interest rate is constant over the entire investment.

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