Your grandfather has offered you a choice of one of the three following alternatives: I. $50,000...

Your grandfather has offered you a choice of one of the three following alternatives:

I. $50,000 now OR

II. $7,000 a year for 10 years OR

III. $100,000 at the end of 10 years

Assuming you could earn 6 percent annually, which alternative should you choose? If you could earn 9 percent annually, would you still choose the same alternative? (This problem could be solved using PV or FV calculations. For this problem, you are instructed to do PV calculations)

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jeff jeffy answered 2 years ago

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