Question
Steve Coleman has just won the state lottery and has the following three payout options for after-tax prize money: 1. $166,000 per year at the
Steve Coleman has just won the state lottery and has the following three payout options for after-tax prize money: 1. $166,000 per year at the end of each of the next six years. 2. $306,000 (lump sum) now 3. $518,000 (lump sum) six years from now. the annual discount rate is 9%. Compute the value of the second option. (round to the nearest whole dollar.) present value of 1: 8% 9% 10% 10.9260.9170.90920. 8570.8420.82630. 7940.7720.75140.7350. 7080.68350.6810.6500. 62160.6300.5960.57470. 5830.5470.513 A. $414,400 B. $306,000 C. $684,000 D. 103,600
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