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You have just won a sweepstakes prize. The prize allows you to choose the method of payment. Prize A: Receive $10000 today. Prize B: Receive
You have just won a sweepstakes prize. The prize allows you to choose the method of payment. Prize A: Receive $10000 today. Prize B: Receive $1000 today, followed by the amount of $1000 received at the end of each year for the next 15 years beginning one year from today. Which alternative you will choose at the interest rate stays at 8%?
a. Prize A
b. Prize B
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