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Question 2 24 pts Seamus and Rodney each win the lottery. Both are offered the same two options, a fixed annuity payment for 15 years
Question 2 24 pts Seamus and Rodney each win the lottery. Both are offered the same two options, a fixed annuity payment for 15 years or a single lump sum payment today. Both Rodney and Seamus choose the annuity. They both make the correct choice, but the present value (PV) of choosing the annuity is higher for Rodney than Seamus. Given this, what must be true about Seamus and Rodney's required returns? Not enough information to decide Rodney required return > Seamus required return Rodney required return Seamus required return Rodney required return Seamus required return
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