George of problem 311 does not really know when the, Business Economics

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George of problem 311 does not really know when the

George (of Problem 3.11) does not really know when the inheritance will come. Assume 10 years and a 10% interest rate. Consider the present worth again.

(a) Which has more effect: halving the life, or halving the interest rate?

(b) Which has more effect: doubling the life, or doubling the interest rate?

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