• Review the Time Value of Money simulation. Which option did you initially choose, cash or annuity? How were your winnings affected by the cash option? How did this compare to the annuity option? If you won the lottery today, which option would you choose and why? Under time value of money simulation, the option between cash or annuity is evaluated on the criteria of short term benefits with strategic (long-term) benefits. Cash option is A large factor comes down to the age of the person. Taking an annuity at 80 makes no sense. Take the cash, spend it fast. If you are consumer-oriented, take the annuity so that you can learn to live comfortably within your means and maybe stay out of trouble on an annual basis, and know that you can do so for years to come. Some players do
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This note was uploaded on 01/04/2011 for the course FIN 200 taught by Professor Williams during the Spring '08 term at University of Phoenix.