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2. Congrats your group just won the lottery. The Ontario Lottery corporation has given you two options on how to collect your winnings. You are
2. Congrats your group just won the lottery. The Ontario Lottery corporation has given you two options on how to collect your winnings. You are so excited to put into practice the material you learned at Yorkville University. Option 1 pays you $1,000,000 today Option 2 pays you $1,750,000 in five years from now Calculate the Present Value of both options with 5% discount rate. Then using the same rate base your analysis on the Future Value. Which option would you choose? What do your results suggest as a general rule for approaching such problems? (Make your choices based purely on the time value of money.)
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