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Hadeel Alyyan has 2 payment options: a 20-year annuity at $50,000 per year starting after one year or a lump sum of $500,000 today. If
Hadeel Alyyan has 2 payment options: a 20-year annuity at $50,000 per year starting after one year or a lump sum of $500,000 today. If the required rate of return is 6% per year which plans has the higher present value? Annuity plan is better because it provides $573, 496 a lump sum of $500,000 today is best option to have a lump sum of $500,000 today is not the best option Annuity plan is not a good option because it provides less than $500,000
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