Osama Sheikh just won the lottery and is trying to decide between the annual cash flow payment option or the lump sum option. He can earn 8% at the bank and annual cash flow option is $67,500/year, beginning today forever, while the lump sum amount is $850,000. Which of the two options should Osama choose?

Answer rating: 100% (QA)

Present Value of Annual Cash Payments of 67500 for... View the full answer