You are the lucky winner of a $30 million state lottery. You can take your prize money
Question:
You are the lucky winner of a $30 million state lottery. You can take your prize money either as
(a) 30 payments of $1 million per year (starting today), or
(b) $15 million paid today. If the interest rate is 8%, which option should you choose?
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PLAN Option a provides 30 million in prize money but paid over time To evaluate it correctly we must ...View the full answer
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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