Should accept offer if opportunity cost is eight percent

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Problem 1: You have provided your friend with a service worth $8,500. Your friend offers you the following cash flow instead of paying $8,500 today. Should you accept his offer if your opportunity cost is 8 percent?

Year        Cash Flow

1              $4000

2             $3000

3           $2000

4            $1000

Reference no: EM132628692

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