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You just won $20,000,000 in the power ball of the Texas lottery.They lottery commission has asked you to chose between the following two options for
- You just won $20,000,000 in the power ball of the Texas lottery.They lottery commission has asked you to chose between the following two options for your payout. Get paid $4,000,000 today and 4,000,000 per year at the end of the next four years, or take $16,000,000 today.
- If your investment opportunity cost is 12%, which alternative would you chose?
- What about if your investment opportunity cost were 15%?
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
