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Business, 16.10.2019 04:00 kandigirl9990

You are comparing two investment options that each pay 6 percent interest, compounded annually. both options will provide you with $12,000 of income. option a pays $2,000 the first year followed by two annual payments of $5,000 each. option b pays three annual payments of $4,000 each. which one of the following statements is correct given these two investment options? assume a positive discount rate. both options are of equal value since they both provide $12,000 of income. î©–a) option a has the higher future value at the end of year three. b) option b has a higher present value at time zero. c) option b is a perpetuity. d) option a is an annuity.

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