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You decide to sell a piece of land that you inherited a few years ago. The buyer agrees to either pay you $24,000 at closing or according to the schedule below (payments are assumed to be at the beginning of each of the 5 years). You do not really need the money today and are planning either way to just let the funds accumulate in an account earning 7%. However, you do plan to use the funds at the end of 5 years after closing on the land transaction to build a new home. Which alternative provides the highest future value at the end of 5 years?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9958735

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