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04-08-2024
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Chubwa will receive TZS 18,000,000 a year for the next 20 years as payment for a song he has just written. If a present 10% discount rate is applied:
i) Should he be willing to sell out his future rights now for TZS 160,000,000?
ii) Would he be willing to sell his future rights now for TZS 160,000,000 if the payments will be made at the beginning of each year?

Answer :

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