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Congratulations! You have won a state lottery. The state lottery offers you the following (after-tax) payout options: Assuming you can earn 6% on your funds,
Congratulations! You have won a state lottery. The state lottery offers you the following (after-tax) payout options: Assuming you can earn 6% on your funds, which option would you prefer?
\begin{tabular}{ll|l} Reference & & Reference \end{tabular} 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 6% on your funds, which option would you prefer? The present value of the payout is: (Round your answers to the nearest whole dollar.) Present value of the payout, Option \#1: Present value of the payout, Option \#2: Present value of the payout, Option \#3: (Enter your answer as a numeral-e.g., 1.) The highest present value using the 6% discount rate and the option that, therefore, appears to be the most favorable, is payout option \#Step by Step Solution
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