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Should you take the option

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Question - Happy Heart Hospital specializes in cardiac care. You are the manager in charge of negotiating the cost of stents with major suppliers. Boston Scientific, a large medical device company, has offered you the following deal: if you pay today, the total cost of the stents will be $94,000. They are giving you the option to pay $100,000 in one year. The risk-free interest rate is 10% per year. Should you take the option?

Reference no: EM132979008

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