Jonah has the choice of paying rita 24000 today or 96000 in


A. Jonah has the choice of paying Rita $24,000 today or $96,000 in 10 years. Assume Jonah can earn a 12 percent after-tax rate of return. Which should he choose?

B. Assume Rafael can earn an 8 percent after-tax rate of return.

Would he prefer $2,700 today or $4,050 in five years?

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Financial Management: Jonah has the choice of paying rita 24000 today or 96000 in
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