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Question: Time value comparisons of single amounts Personal Finance Problem In exchange for a $20,000 payment today, a well-known company will allow you to choose one of the alternatives shown in the following table: Your opportunity cost is 11%.

Alternative Single amount

A $24,500 at the end of 3 years

B $53,000 at the end of 9 years

C $197,000 at the end of 20 years

a. Find the value today of each alternative.

b. Are all the alternatives acceptable long dash -that is, worth at least $20,000 today?

c. Which alternative, if any, will you take?

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Category:- Basic Finance
Reference No.:- M93067457

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