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You have just won a lottery and as a winner you have two options. Option one is to receive a lump sum payment of 150,000
You have just won a lottery and as a winner you have two options. Option one is to receive a lump sum payment of 150,000 two years down the line and option 2 is to receive E,000 every year for the next elewen years. Which cotion you should choese? Assume appicable interest rate is 10%. Yov are indifferent, both are similar in value Option 1, as it has higher present value Option 2 , it is gining you higher prevent value Option 2, as it has higher future value
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