Assume your business is owed $10,000 by a customer, and the terms of the sale called for the customer to pay you two years from now. Your customer asks you if you would be interested in accepting $9,000 today in full settlement of the account instead of the $10,000 in two years. Tell how you would decide whether to accept that offer and what factors and assumptions would you consider in making your decision. Give an example with calculations as part of your discussions.
Requirements: Show enough calculations to show how you arrived at your decision. The explanation and justification of your decision should be lengthy enough to show that you understand the concept of the time value of money and are using the concepts and tools presented in our topics for this week.
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