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5. Loura just won the lottery, and she must choose between two award options. The first option (Option 1) she can select to receive 8
5. Loura just won the lottery, and she must choose between two award options. The first option (Option 1) she can select to receive 8 end-of year payments of $9.5 million. The second option (option 2) she can receive half of the payments of the first option but on doubled maturity. If she thinks she can earn 7% annually, which should she choose? * OA) Options 1 & 2 are indifferent OB) Option 2 exceeds option 1 by 1.719 million C) Option 2 exceeds option 1 by $719,719 OD) Option 1 exceeds option 2 by $11,855,755 E) None of the above
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