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You won the lottery and have a number of choices as to how to take the money. Which choice yields a greater present value? El

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You won the lottery and have a number of choices as to how to take the money. Which choice yields a greater present value? El Click the icon to the EEB (Click the icon to view the present value of annuity of $1 table.) 0 A. $81,000 (lump sum) 6 years from now using a 5% discount rate 0 B. $85,000 (lump sum) 6 years from now using an 6% discount rate view the present value of $1 table.) Data Table Present Value of Annuity of $1 Periods 5% 3.546 4.329 5.076 5.786 6.463 7.108 6% 3.465 4.212 4.917 5.582 6.210 6.802 8% 3.312 3.993 4.623 5.206 5.747 6.247 C. D. $47,000 (lump sum) now $6,000 a year at the end of each of the next 4 years using a 5% discount rate Data Table Present Value of $1 Periods 4 5% 0.823 0.784 0.746 6% 0.792 0.747 0.705 0.665 0.627 0.592 8% 0.735 0.681 0.630 0.583 0.540 0.500 Print Done 0.677 0.645 Print Done Click

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