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Congratulations! You have won a state lottery. The state lottery offers you the following (after-tax) payout options: (Click the icon to view the payout options.)
Congratulations! You have won a state lottery. The state lottery offers you the following (after-tax) payout options: (Click the icon to view the payout options.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table. Assuming you can earn 10% on your funds, which option would you prefer? Data Table The present value of the payout is: (Round your answers to the nearest whole dollar.) Present value of the payout, Option #1: Option #1: $15,000,000 after five years Option #2: $2,100,000 per year for five years Option #3: $14,000,000 after three years Present value of the payout, Option #2 Present value of the payout, Option #3 Print (Enter your answer as a numeral-e.g., 1.) Done The highest present value using the 10% discount rate and the option that, therefore, appears to be the most favorable, is payout option #
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