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Sean and Jessica Want to Sell Their Interest in a Small

Question 9

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Sean and Jessica want to sell their interest in a small business. They have received two offers. If they accept Offer A they will receive $40 000 immediately and $30 000 in two years. If the accept Offer B they will receive $50 000 now and $2000 at the end of every six months for 5 years. If interest is 8%, which offer is preferable?

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