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Congratulations you have won the 400 million jackpot of the Power Ball lottery. You now have to decide whether you should take the lump sum
Congratulations you have won the 400 million jackpot of the Power Ball lottery. You now have to decide whether you should take the lump sum payment of 227.8 million, or take 30 equal payments of 13.33 million each. Under the equal payment option, the first payment will be paid immediately followed by 29 annual payments. TEQ I a) Draw the cash flow for the equal payment option 5 PTS 2 INTEL b) Find the IRR for the equal payment option ZOPTS c) Using the information obtained in b) determine what option you should take if your MARR is 3%. 7223 3 3 Nets
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