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The Florida Lotto carries an estimated jackpot of $45 million. Suppose that you are the only winner of the jackpot and you are given (1)
The Florida Lotto carries an estimated jackpot of $45 million. Suppose that you are the only winner of the jackpot and you are given (1) Installment option: 30 equal installments of $1.5 million ($45 million/30= $1.5 milion) at the beginning of each year for the next 30 years. (2) Cash option: a lump sum of $23.9 million today. Ignore taxes and assume your rate of return is 4.75% per year. Which option is more valuable? Show your work and highlight your final answers. VY PV PMT FV N For the toolbar, press Al T+F10/PC) or ALTHEN+ESO (Mark two options to claim your winnings: gove
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