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You have just won the state lottery and have two choices for collecting your winnings. You can collect $115,000 today or receive $22,000 at the
You have just won the state lottery and have two choices for collecting your winnings. You can collect $115,000 today or receive $22,000 at the end of each year for the next seven years. A financial analyst has told you that you can earn 8% on your investments.
Yau have just won the state lottery and have two choices for collecting your winnings. Yau can collect $115,000 today or receive $22,000 a the end of each year for the next seven years. A financial analyst has told you that you can earn 8% on your investments. 1. Calculate the present value of both the options (EY of $1, PW of $1, EVA of $1, and PVA of S1) (Use the appropriate factor(s) from the tables provided. Round your answers to nearest whole dollar.) Present Value Option 1 Option 2Step by Step Solution
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