You have just won the lottery and have a choice of receiving a lump sum of $1,000,000

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You have just won the lottery and have a choice of receiving a lump sum of $1,000,000 or an annuity of $100,000 per year for 15 years. If the appropriate discount rate is 8%, which alternative would you choose?

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Fundamentals of Corporate Finance

ISBN: 978-0077861704

11th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Posted Date: Dec 07, 2018 08:54 AM

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You have just won the lottery and have a choice of receiving a lump sum of $1,000,000

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Calculate the present value of 100000 in 15years As the cash flows are ... View the full answer

Fundamentals of Corporate Finance

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