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John has just won the state lottery and has three awards options from which to choose. He can elect to receive a lump sum payment
John has just won the state lottery and has three awards options from which to choose. He can elect to receive a lump sum payment today of $46 million, 10 annual end of year payments of $7 million, or 30 annual end of year payments of $4 million. If he expects to earn a 9% annual return on his investments, which options should he choose and why?
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