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Alex Anderson recently won a lottery and has the option of receiving one of the following three prizes: (1) $50,000 cash immediately (2) $20,000 cash

Alex Anderson recently won a lottery and has the option of receiving one of the following three prizes: (1) $50,000 cash immediately (2) $20,000 cash immediately and a five-period annuity of $8,000 beginning one year from today (3) A five-period annuity of $13,000 beginning one year from today Assuming an interest rate of 6%, which option should Alex choose?

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