Question
35) Suppose you have a winning lottery ticket and you are given the option of accepting $2900000 three years from now or taking the present
35) Suppose you have a winning lottery ticket and you are given the option of accepting $2900000 three years from now or taking the present value of the $2900000 now. The sponsor of the prize uses a 6% discount rate. If you elect to receive the present value of the prize now, the amount you will receive is
$2586038.
$2900000.
$2434898.
$2507558.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
