Your father offers you a choice of $105,000 in 12 years or $47,000 today. a. If money

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Your father offers you a choice of $105,000 in 12 years or $47,000 today.

a. If money is discounted at 8 percent, which should you choose?

b. If money is still discounted at 8 percent, but your choice is between $105,000 in 9 years or $47,000 today, which should you choose?

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Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Question Posted: Oct 14, 2014 06:47 AM

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Your father offers you a choice of $105,000 in 12 years or $47,000 today. a. If money

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a Take 47000 toda y instead of 105000 in 12 years b Take the ...View the full answer

Foundations of Financial Management

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