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After taking a particularly difficult Accounting 202 Exam, you decide that it's time to take a break at a local beverage establishment with something cool
After taking a particularly difficult Accounting 202 Exam, you decide that it's time to take a break at a local beverage establishment with something cool and refreshing. On your way, you decide to buy a lottery ticket. The next morning while recovering from the previous night's activities you realize you've won the jackpot of $100 million! You call your significant other with the great news, you call your boss and tell them in no uncertain terms you are not coming back, and send an email to your Accounting 202 Instructor to take your exam and ...... When you get to the lottery office, they give you several options for your payout... Option A: Take $50 million now in one lump sum payment Option B: Receive $4 million a year over the next 25 years (you get the 1st pmt now) Option C: Take $25 million now, get $25 million in year 8, get $25 million in year 16, and get $25 million in year 25 Assuming that return rates will average 7% over the next 25 years, what is your best option (btw, your Accoutning 202 instructor is available for a consulatation for a small fee...)
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