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You won the California State lottery. You have to pick one of three (3) choices to receive your money. Using the concept of present value,
You won the California State lottery. You have to pick one of three (3) choices to receive your money. Using the concept of present value, which choice is the most valuable if your opportunity rate is 9.0% 5. $40,000 per year for the next 20 years: 6. $25,000 today, plus $35,000 per year for the next 25 years: 7. $250,000 today, plus $12,000 per year for the next 40 years: 8. Which choice gives you the most money? A. B. C
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