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Your financial planner offers you two different investment plans.  Plan X is a $10,000 annual perpetuity. Plan Y is a 17-year, $14,000 annual annuity.  Both plans will make their first payment one year from today. At what discount rate would you be indifferent between these two plans?

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Ronaldo Mendoza
Ronaldo MendozaLv10
12 Jan 2021

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