Jackie calls you and is ecstatic because she won some money in the state lottery. She can
Fantastic news! We've Found the answer you've been seeking!
Question:
Jackie calls you and is ecstatic because she won some money in the state lottery. She can take a single lump sum payout of $1 million dollars or receive $100,000 per year for the next 20 years.Please answer the following:
a.What rate of return would Jackie need to break even if she took the lump sum amount instead of the annuity?
b.Discuss both the advantages and disadvantages of the lump-sum payout of $1,000,000 and also receiving the income stream for the next 20 years
Posted Date: