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Effective Discount = 1 -(1-0.10) (1-0.20) (1 - 0.20) =1- (0.90 × 0.80 × 0.80) = 1- 0.576 = 0.424 Convert to Percentage- Single Discount Rate = 0.424 × 100 = 42.4% The equivalent single discount rate is 42.4%.
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