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You have won the lottery, and you must choose between three award options. You can select one of the following options: To receive a lump
You have won the lottery, and you must choose between three award options. You can select one of the following options: To receive a lump sum today of $50 million, To receive 10 end-of-year payments of $8 million, to receive 30 end-of-year payments of $4.5 million. If you expect to earn 8% annually:
What is the present value of alternative ii? What is the present value of alternative iii? Which one you must choose?
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