Najma just won US$2.5 million in the state lottery. She is given the option of receiving a

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Najma just won US$2.5 million in the state lottery. She is given the option of receiving a total of US$1.3 million now or she can elect to be paid US$100,000 at the end of each of the next 25 years. If Najma can earn 5 percent annually on her investments, from a strictly economic point of view which option should she take?
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Principles of Managerial Finance

ISBN: 978-1408271582

Arab World Edition

Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix

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