You just won the Florida lottery. To receive your winnings, you must select ONE of the two
Question:
You just won the Florida lottery. To receive your winnings, you must select ONE of the two
following choices:
1. You can receive $1,000,000 a year at the end of each of the next 30 years.
2. You can receive a one-time payment of $15,000,000 today.
Assume that the current interest rate is 6%. Which option is most valuable?
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The most valuable option is the one with the largest present value You know that the seco...View the full answer
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Related Book For
Fundamentals Of Financial Management
ISBN: 9780357517574
16th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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