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A Cereal Producer Finds That When Eli Manning, the Quarterback

Question 105

Multiple Choice

A cereal producer finds that when Eli Manning, the quarterback for the New York Giants, endorses its product, its annual income increases from $1 million to $3 million. If the interest rate is 10 percent, the present value of Eli's name is


A) $.2 million
B) $3 million
C) $10 million
D) $20 million
E) infinite

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