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6. BUSN 331 - Section II just won the lottery. The class has been given 2 options. Explain which option the class should choose. Please
6. BUSN 331 - Section II just won the lottery. The class has been given 2 options. Explain which option the class should choose. Please show your work. a. Take a lump sum of $200,000,000 today. b. Take $20,000,000 per year for the rest of your life. ***This scenario assumes an opportunity cost / discount rate of 6.7%. Does your answer change in you can assume an opportunity cost/discount rate of 11.9%? What does an increase in interest rates tell us about the time value of money in this type of situation? (10 Points)
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