Congratulations! You've won a state lotto! The state lottery offers you the following (after-tax) payout options: Option
Question:
Option #1: $12,000,000 six years from now
Option #2: $2,200,000 at the end of each year for the next five years
Option #3: $10,500,000 four years from now
Requirement
Assuming that you can earn 10% on your funds, which option would you prefer?
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Option 1 Present value 12000000 PV factor i 10 n 6 12000000 0564 6768000 Opti...View the full answer
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