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principle of finan Management 65 year-old Lui is retiring and can take either $500,000 in cash OR opt for an ordinary annuity payout that promises
principle of finan Management 65 year-old Lui is retiring and can take either $500,000 in cash OR opt for an ordinary annuity payout that promises him $50,000 per year for as long as he lives. Which of the following statements is MOST correct? Select one: a. The higher the interest rate, the more likely Lul is to prefer the $500,000 lump sum b. Because of the time value of money, Lui will always be better off taking the $500,000 up front. c. If Lui expects to live more than 10 years, then he will prefer the annuity d. If Lui is certain that there will be no default on its future payments, he should select the $50,000 per year
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