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Several years ago, a woman won $59 million in the state lottery. To pay off the winner, the state offered five payment plans to the
Several years ago, a woman won $59 million in the state lottery. To pay off the winner, the state offered five payment plans to the woman. Plan 1 included an immediate payment of $19 million followed by 13 annual payments of $4.8 million. Plan 2 consisted of an immediate payment of $18 million followed by 9 equal annual payments of $6.4 million. Plan 3 included an immediate payment of $4.8 million followed by 11 annual payments, each of which is $0.4 million greater than the previous payment. Plan 4 consisted of an immediate payment of $29 million, followed by three equal annual payments of $12 million. Plan 5 involves an immediate payment of \$59 million. Part a Recognizing the unequal lives of the various alternatives, determine which plan the woman should select if her MARR is 3% compounded annually. Click here to access the TVM Factor Table calculator. If the MARR is 3%, the greatest PW equals \$ million
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