What annual membership fees would make you indifferent

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You are currently a member of a club whose annual membership fee is $2,000. The fee is expected to increase by 3 percent per year. a. Would you buy for $65,000 a lifelong family membership to the club that can be passed down to your descendants? You can earn 6 percent on a long-term bank deposit. b. What discount rate would make you indifferent? c. What annual membership fees would make you indifferent? d. What lifelong membership price would make you indifferent?

Reference no: EM131178479

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