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Suppose you win the lottery, and they offer you $1,200,000 now or $10,000 per month for 30 years. Using a 6% discount rate. Which
Suppose you win the lottery, and they offer you $1,200,000 now or $10,000 per month for 30 years. Using a 6% discount rate. Which is the better offer? (1 mark) Which is better for your retirement? $200 per month payment into a RRSP for 25 years at 5.35% annual return OR $5,000 per year payment into a RRSP for 10 years at 4.25%? (2 marks) Give reasons.
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To determine which offer is better in each scenario we need to compare the present value of the cash flows associated with each option Lets calculate ...
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
