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What is the most you would pay for the box

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Reference no: EM132824044

Question - You have an opportunity to purchase a Magic Box. The Magic Box spits out acrisp $50 bill every year on the anniversary date...forever. As an added bonus it also spits out a $100 bill on the purchase date. Your discount rate is 6%. What is the most you would pay for the box? How much would you pay if the box stops working after the 25thpayment?

Reference no: EM132824044

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