Should you accept the offer if the discount rate is a 12 b


You are awarded $400,000 in a lawsuit, payable immediately. The defendant makes a counteroffer of $50,000 per year for the first three years, starting at the end of the first year, followed by $60,000 per year for the next 10 years. Should you accept the offer if the discount rate is: a) 12% b) 8%.

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Financial Management: Should you accept the offer if the discount rate is a 12 b
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