Congratulations! Youve won a major lottery, which offers you the following payout options: Option #1: $12,000,000 five
Question:
Option #1: $12,000,000 five years from now
Option #2: $2,250,000 at the end of each year for the next five years
Option #3: $10,000,000 three years from now
Requirement
Assuming that you can earn 8% on your funds, which option would you prefer?
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Answer rating: 56% (16 reviews)
To determine the most favourable payout option we discount the future cash flows to ...View the full answer
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Managerial Accounting
ISBN: 978-0176223311
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