What interest rate would you be indifferent

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Reference no: EM131915808

Your uncle offers you two alternatives for receiving your inheritance:

a. Receive $150,000 now and $75,000 annually for the next ten years; or

b. Receive nothing now, but $100,000 annually for the next ten years.

Required: At what interest rate would you be indifferent between the two choices? (that is, at what interest rate would the alternatives have the same present value)

Reference no: EM131915808

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