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Business, 21.02.2020 22:46 stussy44

[2 points] Consider the following two options. You can receive $87,000 at the end of 4 years, or you could receive $P today. If you do not take the money now (i. e. today) you would deposit any money received (again received today) into a savings account that earns 7.25% interest per year. How much money would you have to receive today (i. e. what is the value of P) that would make you: a. [0.5 points] Prefer to take the option of accepting P dollars today b. [0.5 points] Prefer to take the option of accepting $87,000 at the end of 4 years c. [1 point] Indifferent in the option your choose

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[2 points] Consider the following two options. You can receive $87,000 at the end of 4 years, or you...
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