Several years ago, a woman won $60 million in the state lottery. To pay off the...

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Several years ago, a woman won $60 million in the state lottery. To pay off the winner, the state offered five payment plans to the woman. Plan 1 included an immediate payment of $20 million followed by 13 annual payments of $5 million. Plan 2 consisted of an immediate payment of $22 million followed by 9 equal annual payments of $6.2 million. Plan 3 included an immediate payment of $3.1 million followed by 11 annual payments, each of which is $0.8 million greater than the previous payment. Plan 4 consisted of an immediate payment of $25 million, followed by three equal annual payments of $14 million. Plan 5 involves an immediate payment of $60 million. Part a Recognizing the unequal lives of the various alternatives, determine which plan the woman should select if her MARR is 3% compounded annually. If the MARR is 3%, the greatest PW equals $ Carry all interim calculations to 5 decimal places and then round your final answer to two decimal places. Please enter your answer in millions of dollars. The tolerance is ±0.01. So, should be selected. million. Several years ago, a woman won $60 million in the state lottery. To pay off the winner, the state offered five payment plans to the woman. Plan 1 included an immediate payment of $20 million followed by 13 annual payments of $5 million. Plan 2 consisted of an immediate payment of $22 million followed by 9 equal annual payments of $6.2 million. Plan 3 included an immediate payment of $3.1 million followed by 11 annual payments, each of which is $0.8 million greater than the previous payment. Plan 4 consisted of an immediate payment of $25 million, followed by three equal annual payments of $14 million. Plan 5 involves an immediate payment of $60 million. Part a Recognizing the unequal lives of the various alternatives, determine which plan the woman should select if her MARR is 3% compounded annually. If the MARR is 3%, the greatest PW equals $ Carry all interim calculations to 5 decimal places and then round your final answer to two decimal places. Please enter your answer in millions of dollars. The tolerance is ±0.01. So, should be selected. million.

Answer rating: 100% (QA)

To determine which payment plan the woman should select we need to calculate the Present Worth PW of ... View the full answer