Congratulations! You've won a state lotto! The state lottery offers you the following (aftertax) payout options: Option
Question:
Option #1: $14,500,000 six years from now
Option #2: $2,200,000 at the end of each year for the next six years
Option #3: $12,500,000 four years from now
Requirement
Assuming that you can earn 6% on your funds, which option would you prefer?
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Answer rating: 65% (20 reviews)
Option 1 Present value 14500000 PV factor i 6 n 6 14500000 0705 10222500 Opt...View the full answer
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PALASH JHANWAR
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