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As the winner of the lottery, you can choose from the following options (assume you can earn10% on your money). Which alternative do you prefer?
- As the winner of the lottery, you can choose from the following options (assume you can earn10% on your money). Which alternative do you prefer?
- $200,000 immediate cash
- $360,000 in 5 years
- $20,000 at the end of each year forever (this means forever)
- $36,000 at the end of each year for 11 years
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The Oxford Handbook Of Computational Economics And Finance
Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du
1st Edition
0199844372, 978-0199844371
