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Business, 01.12.2021 18:20 jeffyisdrunk

An individual received an inheritance from a grandparent’s estate. The money can be invested, and the individual can either (a) receive a $20,000 lump-sum amount at the end of 10 years or (b) receive $1,400 at the end of each year for the next 10 years. The individual wants a rate of return of 12% and uses the following information:Present value of $1 = 0.322Present value of annuity of $1 = 5.650What is the preferred investment option and what is its net present value?

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An individual received an inheritance from a grandparent’s estate. The money can be invested, and th...
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