Question
A $700,000 state lottery prize is spread evenly over fourteen years ($50,000 a year) (Alternative 1), or you may take a lump distribution of $470,000
A $700,000 state lottery prize is spread evenly over fourteen years ($50,000 a year) (Alternative 1), or you may take a lump distribution of $470,000 (Alternative 2). If you can earn 6 percent, calculate the present values of both alternatives. Use Appendix D to answer the question. Round your answers to the nearest dollar. PV(Alternative 1): $ PV(Alternative 2):
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The Economics Of Money Banking And Finance
Authors: Howells, Keith Bain
3rd Edition
0273693395, 978-0273693390
