financial management question 54

You have recently won the super jackpot in the Wael . the fine print, you discover that you have the following Washin e present value of the offer if th disouil a. You will receive 31 annual payments of $250,000, with the first payment b. You will receive $530,000 now, and you will not have to pay taxes on this amount Using a discount rate of 7 percent, which option should you select? 54 Calculating Annuities delivered today. The income will be taxed at a rate of 28 percent. Taxes w withheld when the checks are issued. tate Lottery. On reading options, In addition, beginning one year from today, you will receive $200,000 each for 30 years. The cash flows from this annuity will be taxed at 28 percent