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Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $440,000 per
Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $440,000 per year for 30 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 4% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided and round final answer to nearest whole dollar amount.) Multiple Choice $13,200,000 $7,608,493 $8,352,832
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