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You just won a lottery and are entitled to receive annuity payments of $100,000 at the end of each of the next twenty years. Alternatively,

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You just won a lottery and are entitled to receive annuity payments of $100,000 at the end of each of the next twenty years. Alternatively, the lottery has offered a lump sum payment today of $1,500,000 Which of the following statements is correct? A You should be able to sell this ticket for more than $2 million, B At every possible interest rate, the annuity is the best choice. C You prefer the lump sum if the interest rate is zero percent. D You cannot make a decision about which option is best without an interest rate

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