What is the present value

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Reference no: EM131990031

Your uncle offers you a choice of $105,000 in 10 years or $47,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a-1. If money is discounted at 8 percent, what is the present value of the $105,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

a-2. Which offer should you choose? $105,000 after 10 years or $47,000 today.

Reference no: EM131990031

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