You have just been approached by a magazine with an offer


Question: You have just been approached by a magazine with an offer for re-subsription. You can renew for 1 year at $20, 2 years for $36, or 3 years at $45. Assuming that you have an opportunity cost of 20% and the cost of a subscription will not change over time, which of these three options should you choose?

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Finance Basics: You have just been approached by a magazine with an offer
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