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If an Individual's Cost of Capital Were 6%, He/she Would

Question 31

True/False

If an individual's cost of capital were 6%, he/she would prefer to receive $110 at the end of one year rather than $100 right now. If an individual's cost of capital were 6%, he/she would prefer to receive $110 at the end of one year rather than $100 right now. (App. B: 6%, 1 period) = $110 x .0.943 = $104
(App. B: 6%, 1 period)
= $110 x .0.943 = $104

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