Congratulations! Youve won a state lotto! The state lottery offers you the following (after- tax) payout options:
Question:
Option # 1: $ 15,000,000 four years from now
Option # 2: $ 2,200,000 at the end of each year for the next five years
Option # 3: $ 11,000,000 three years from now Requirement Assuming
Requirements
Assuming that you can earn 10% on your funds, which option would you prefer?
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Option 1 Present Value 15000000 PV factor i 10 n 4 15000000 0683 10245000 ...View the full answer
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