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23) Congrattnlations! You have just 'won $4 million dollars in the lotterl,! However, the lottery bureau has j ust informed you that you can take
23) Congrattnlations! You have just 'won $4 million dollars in the lotterl,! However, the lottery bureau has j ust informed you that you can take $2,3 00,000 today or you can take $ 1 60,000 at the end of each year for 25 years, If you can earn 5Yo awlually on your inrzestments, which option should you choose? (Make your choices based purely on the time value of money.) Tip: PV of an ordinary annuity protrlem.
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