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Use this information for the next two problems Suppose you win a contest and are given the choice of one of the following two prizes

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Use this information for the next two problems Suppose you win a contest and are given the choice of one of the following two prizes (assume an interest rate of 8% ). Prize #1=$50,000 to be received right now with four additional payments of $50,000 to be received each year for the next four years. Prize #2=$200,000 to be recelved right away. Question 12 Which prize would you choose? Prat 12 Prim 81 Question 13 On a present value bais, how much more would your get with the above choice over the one you did not choose? 5

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