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 midterm 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
 Reiter
 $200,000, $50,000

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