a cash-basis individual, wins a $1m lottery price and becomes entitled to the prize on August 1. Con has until September 30 to choose either 20 annual payments of $50,000 each or a lump-sum payment of $623,111 (the present value of the annuity, assuming a 5% interest factor). Based on the content of this chapter, what would you advise Con to do? Why.

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Choosing the lumpsum payment of 623111 would be the more financially beneficial option for Con assum... View the full answer