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Lottery A pays $1,000 today and Lottery B pays $1,750 at the end of five years. If the discount rate is 5%, which lottery should

Lottery A pays $1,000 today and Lottery B pays $1,750 at the end of five years. If the discount rate is 5%, which lottery should you choose? ( Please show a detailed process)

A. Lottery B, because its present value is $1,371 which is more than that of Lottery A.

B. Lottery A, because its future value is $1,276.

C.Lottery B, because it pays $1,750 which is more than $1,000 from Lottery A.

D. Either option gives the same value over time.

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