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Present Value Analysis

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You are offered a choice of one of the three following alternatives: $10,000 now; $2,000 a year for 8 years; or $24,000 at the end of 8 years. Assuming you could earn 11 percent annually, which alternative should you choose? Note: Show the computations and then select the best alternative.

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You have to calculate PV of all the three options.

Option 1: Present Value is ...

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