Question
You friend won the lottery and two payout options. Option A allows them to receive $1,000,000 today while option B will pay them $4,000,000 in
You friend won the lottery and two payout options. Option A allows them to receive $1,000,000 today while option B will pay them $4,000,000 in 20 years. Which option would you recommend to your friend if the interest rate is 4.75% compounded annually? Round to the nearest 0.01.
1). Indifferent between Option A and Option B
2). Option B
3). Option A
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Financial Performance
Authors: Marc Bertoneche, Rory Knight
1st Edition
0750640111, 978-0750640114
