Contractual debt outstanding with two options for settlement

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Assume that JJ Inc. has a contractual debt outstanding with two options for settlement: (a) pay $3,500,000 today or (b) make annual payments of $400,000 for 15 years, with each payment due at the end of the year. Assuming an effective rate of 8%, which would you recommend?

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Reference no: EM131974621

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