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For your retirement today, your company is offering you an immediate lump sum of $ 1 million or an annual annuity of of 2 5

For your retirement today, your company is offering you an immediate lump sum of $

1

million or an annual annuity of of

25

payments of $

150000

starting today. Your bank is offering you an interest rate of

9 %

per year compounded yearly. Which option has the greater present value? Justify your answer.

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