Question
You have just won the lottery and have two choices with regard to the payout: a: $1 million today, or b: $40,000 per year for
You have just won the lottery and have two choices with regard to the payout:
a: $1 million today, or
b: $40,000 per year for 40 years.
Which one would you prefer assuming you can invest at 5% per year? please show all work and formulas.
do not use excel.
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Investment Science
Authors: David G. Luenberger
1st International Edition
0195391063, 9780195391060
