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You are selling a tractor for dollar 10,000. The buyer can pay dollar 3,000 now, dollar 2, 500 new year, dollar 1, 500 in two years, and dollar 3,000 in three years. If you require an 8% interest rate, would you accept offer? Using the same circumstances, would you accept an offer paying dollar 2, 200 per year for six years? The first payment is one year from the purchase date.

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Financial Management, Finance

Category:- Financial Management
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