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Joey just won the lottery; he must choose between three award options. He can elect to receive a lump sum today of P61 million, to
- Joey just won the lottery; he must choose between three award options. He can elect to receive a lump sum today of P61 million, to receive 10 end-of-year payments if P9.5 million, or to receive 30 end-of-year payments of P5.5 million. (show your solution and formula)
a. If he thinks he can earn 7% annually, which should he choose?
- if he expects to earn 8% annually, which is the best choice?
- If he expects to earn 9% annually, which option would you recommend?
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Mathematical Control Theory And Finance
Authors: Andrey Sarychev, Albert Shiryaev, Manuel Guerra, Maria Do Rosário Grossinho
2008th Edition
3540695311, 978-3540695318
