A rich uncle gives you the choice of one of the following, Ask an Expert

Economics

A rich uncle gives you the choice of one of the following legacies:

a. $15000 each year for the next 12 years

b. $13000 each year for the next 18 years

c. $11000 each year for the next 12 years plus a lump-sum payment of $81000 at the end of the 18th year.

Which would you take and why? Assume that the appropriate discount rate is 10 percent and all amounts would be received at the end of the year.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92636772

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