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Your friend (remember from Assignment 5) won several hundred million dollars in the lottery. They told you that they would give you $2,000,000. Finally, you
Your friend (remember from Assignment 5) won several hundred million dollars in the lottery. They told you that they would give you $2,000,000. Finally, you can tell your instructors what you really think of them, quit school, quit your job and never have to work another day in your life. You are a free person. Are you really? Your friend has given you a choice to take the present value of $2,000,000. The cash option consists of taking the Present Value (PV) of 2,000,000 received in 20 years with a discount rate of 6%. How much does your friend give you? Your friend (remember from Assignment 5) won several hundred million dollars in the lottery. They told you that they would give you $2,000,000. Finally, you can tell your instructors what you really think of them, quit school, quit your job and never have to work another day in your life. You are a free person. Are you really? Your friend has given you a choice to take the present value of $2,000,000. The cash option consists of taking the Present Value (PV) of 2,000,000 received in 20 years with a discount rate of 6%. How much does your friend give you
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