Question: Please help me find option 2 for each scenario. Anthony has just won the Flyball Lottery. He has two options for receiving his prize. The
Please help me find option for each scenario.
Anthony has just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $ cash
payment today. The second option is to receive $ at the end of each of the next years and a $ lump sum payment in
the th year. Anthony can invest money at a rate.
a Calculate the present value of the two options. For calculation purposes, use decimal places as displayed in the factor table provided
and round final answer to decimal place, eg
Present Value
Option
Option
Which option should Anthony choose to receive his winnings?
b If Anthony could invest money at calculate the present value of the two options. For calculation purposes, use decimal places
as displayed in the factor table provided and round final answer to decimal place, eg
Present Value
Option
Option
Which option should he choose?
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