Question: Figure 5.4 shows that Johnson and Johnson's five-year borrowing rate is 2.03 % and Xerox's is 3.52 % Which would you prefer?$ 500 from Johnson

Figure 5.4 shows that Johnson and Johnson's five-year borrowing rate is 2.03 %

and Xerox's is 3.52 % Which would you prefer?$ 500

from Johnson and Johnson paid today or a promise that the firm will pay you

$ 575 in five years? Which would you choose if Xerox offered you the same alternative?

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