Answer each of the following independent questions.
Alex Meir recently won a lottery and has the option of receiving one of the
following three prizes: (1) $92,000 cash immediately, (2) $36,000 cash
immediately and a six-period annuity of $9,500 beginning one year from today, or
(3) a six-period annuity of $18,600 beginning one year from today.
Assuming an interest rate of 6%, determine the Present value for the above
options. (Use PVA of $1) (Round "PV Factors" to 5 decimal places and final
answers to the nearest dollar amount.)
Which option should Alex choose?
The Weimer Corporation wants to accumulate a sum of money to repay certain debts
due on December 31, 2022. Weimer will make annual deposits of $185,000 into a