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You have an investment from which you can receive your return in one of the following ways: Option A: An annuity with payments of $100,000
You have an investment from which you can receive your return in one of the following ways: Option A: An annuity with payments of $100,000 each for the next ten years, with the first payment commencing today. Option B: A lump-sum one-time payment of $1,005,757 after five years. The interest rate is 6%, compounded annually. Which option has the greater present value? Multiple Choice Option B. Option A. Both options have the same present value
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