You just won a lottery award of $5,200,000. There are two pay out options, one is 20

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You just won a lottery award of $5,200,000. There are two pay out options, one is 20 equal annual payments of $260,000, or a lump sum amount of $1,975,000.

If you have investment alternative that earns 10% annually, which should you choose?

Related Book For answer-question

Personal Financial Planning

ISBN: 9780357438480

15th Edition

Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk

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Posted Date: Jun 27, 2023 05:53 AM

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You just won a lottery award of $5,200,000. There are two pay out options, one is 20

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To determine which option is more advantageous we need to compare the present value of the 20 equal ... View the full answer

Personal Financial Planning

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