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You have just won the state lottery and have two choices for collecting your winnings. You can collect $110,000 today or receive $21,100 at
You have just won the state lottery and have two choices for collecting your winnings. You can collect $110,000 today or receive $21,100 at the end of each year for the next seven years. A financial analyst has told you that you can earn 8 percent on your investments. Required: 1. Calculate the present value of both the options (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. 2. Which alternative should you select? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the present value of both the options. Note: Round your answers to nearest whole dollar. Present Value Ontion 1 $ 110.000l
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