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You are entitle to receive a cash prize on march 1 2013

Question: You are entitle to receive a cash prize on March 1, 2013 using one of two options below:

1) A lump sum amount on March 1, 2013

2) $20,000 on March 1, 2013 plus $5,000 each March 1 for three years, beginning in 2016. Assuming annual interest rate is 10%, what lump sum amount in option 1 would make you indifferent between the two options?

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Accounting Basics: You are entitle to receive a cash prize on march 1 2013

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Accounting Basics: You are entitle to receive a cash prize on march 1 2013

Reference No:- TGS02551828

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