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. If Q4. If you win the Jackpot, you can choose between cash or an annuity, explained below. Please, explain numerically which alternative you should

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Q4. If you win the Jackpot, you can choose between cash or an annuity, explained below. Please, explain numerically which alternative you should choose. Note: Please solve the problem with the discount rate you believe is more appropriate Annuity $153,000,000 $5,100,000 $1,275,000 Cash Powerball Jackpot for Sat, Jan 21, 2017 30 average annual payments of $93,500,000 Lump-sum cash: $93,500,000 $23,375,000 25% Federal Tax Subtotal $3,825,000 $70,125,000

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