You have won a state lottery and have been given some choices as to how you can
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Question:
You have won a state lottery and have been given some choices as to how you can receive your winnings. Your personal discount rate is 9%.
£510,000 today
£150,000 a year for 5 years starting in one year
£41,000 a year starting in one year and lasting forever
£200,000 today and £400,000 in 5 years.
£29,000 a year starting in one year and growing at 3% a year forever.
Which do you choose and why? (10)
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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