Calculate the present value of each scenario using an 8

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1. $7,550 a year at the end of each of the next 8 years
2. $48,350 (lump sum) now
3. $100,050 (lump sum) 8 years from now

Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value? Would your preference change if you used a 10% discount rate?

Reference no: EM13601846

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