Solution-Rate of return with annual compounding

Rate of return with annual compounding

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Reference no: EM131235614

At what rate of return with annual compounding, would you be indifferent between Option A, a contract that pays $7,000 today, and Option B, a contract that pays $8,000 in 4 equal payments of $2,000 (with one payment today and one payment at the end of each of the next 3 years)?

Reference no: EM131235614

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Rate of return with annual compounding

Reference no: EM131235614

Reference no: EM131235614

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