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You have just won a magazine lottery and have a choice between three alternatives. You can get $100,000 now, or $10,000 per year in perpetuity, or...

You have just won a magazine lottery and have a choice between three alternatives. You can get $100,000 now, or $10,000 per year in perpetuity, or $50 000 now and $150,000 at the end of 10 years. If the appropriate discount rate is 12% per annum, which option should you choose?

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