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5 Congratulations! You have won a state lottery. The state lottery offers you the following (after-tax) payout options: (Click the icon to view the payout
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Congratulations! You have won a state lottery. The state lottery offers you the following (after-tax) payout options: (Click the icon to view the payout options.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annulty of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Assuming you can eam 12% on your funds, which option would you prefer? The present value of the payout is: (Round your answers to the nearest whole dollar.) Present value of the payout, Option \#1: Present value of the payout, Option #2 : Present value of the payout, Option \#3: (Enter your answer as a numeral-e.g., 1.) The highest present value using the 12% discount rate and the option that, therefore, appears to be the most favorable, is payout option \# Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) 12% on your funds, which option would you prefer? Data table e payout is: (Rc ayout, Option \#2 Option \#1: $15,000,000 after five years Option \#2: $2,000,000 per year for five years Option \#3: $14,000,000 after three years value using the 1 orable, is Reference Reference Reference Reference Step by Step Solution
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