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Current Attempt in Progress Daniel has just won the Flyball Lottery. He has two options for receiving his prize. The first option is to
Current Attempt in Progress Daniel has just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $134,000 cash payment today. The second option is to receive $23,400 at the end of each of the next 19 years and a $27,300 lump sum payment in the 20th year. Daniel can invest money at a 10% rate. Click here to view the factor table. (a) Calculate the present value of the two options. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, e.g. 58,971.) Option 1 Option 2 Present value $ $ Which option should Daniel choose to receive his winnings? (b) If Daniel could invest money at 13%, calculate the present value of the two options. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, e.g. 58,971) Option 1 Option 2 Present value $ $ Which option should he choose?
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