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What discount rate would you be in different

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You won the lottery, and can choose one of two (guaranteed) payments: Choice A pays $10,000 three years from today; Choice B pays $1,000,000 exactly 100 years from now. 

1. If the discount rate is 8%, which option should you choose? 

2. If the discount rate is 4%, which option should you choose?

3. At what discount rate would you be in different between these two choices?  

Reference no: EM13972346

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