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2 2 You just won a lottery and are entitled to receive annuity payments of $100,000 at the end of each of the next 20
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2 You just won a lottery and are entitled to receive annuity payments of $100,000 at the end of each of the next 20 years. Alternatively, the lottery has offered a lump sum payment today of $1.5 million. Which of the following statements is correct? You should be able to sell this ticket for more than $2 million. B At every possible interest rate, the annuity is the best choice. At every possible interest rate the lump sum payment is the best choice. D You prefer the annuity if the interest rate is zero percentStep by Step Solution
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