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Unformatted text preview: full amount of the inheritance in a mutual fund that earns 10% annually. a. On purely financial grounds, which option should you choose and why? b. What annual payment amount would make you indifferent between the $200,000 lump sum now option and the annual payments at the end of each of 5 years? 11. Gapenski, Chapter 11 Problem 1 12. Gapenski, Chapter 11 Problem 4 Problem Set 4 is due Tuesday, October 20th by 2 p.m. Problem set 4 should be completed by hand as practice for the mid-term exam. We will use EXCEL to calculate time value of money later. In this exercise, you will learn what EXCEL is doing. 1...
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- Spring '10