Question
You just won a $16 million lottery. You can choose either receiving $4 million today or $640000 per year for 25 years. Which time value
You just won a $16 million lottery. You can choose either receiving $4 million today or $640000 per year for 25 years. Which time value of money calculation should you use to decide between these two alternatives?
Future value of a lump sum
Present value of an annuity
Present value of a lump sum
Future value of an annuity
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Macroeconomics Principles Applications and Tools
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
9th edition
978-0134089027, 134089022, 978-0134420684
