Congratulations! You have won a state lottery. The state lottery offers you the following (after- tax) payout
Question:
Congratulations! You have won a state lottery. The state lottery offers you the following (after- tax) payout options:
Option # 1: $ 15,000,000 after five years
Option # 2: $ 2,150,000 per year for five years
Option # 3: $ 13,000,000 after three years
Assuming you can earn 8% on your funds, which option would you prefer?
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Option 1 Present value Net cash inflow X PV Factor for i8 n 5 15000000 ...View the full answer
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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