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Calculate the present value of each of the alternatives below, if the discount rate is 12%.

a. $45,000 today in one lump sum.

b. $70,000 paid to you in seven equal payments of $10,000 each at the end of each of the next seven years.

c. $80,000 paid in one lump sum 7 years from now.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92311596

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