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Problem:

A cash-strapped young professional offers to buy your car with four, equal annual payments of $3000, beginning two years from today.

Requirement:

Question: Assuming you're indifferent to cash versus credit, that you can invest at 10%, and that you want to receive $9000 for the car, should you accept?

Note: Explain in detail.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91174613

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