If the appropriate interest rate is 6.00 percent, which option should you choose to receive?
a) PV = $100,000
b)
PV = $175,000 / (1 + 6%)9
PV = $175,000/1.689479
PV = $103,582.23
c)
PV =
PV = $20,000 * 6.801692
PV = $136,033.80
Hence, Option C is the best alternative.
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