You won the lottery and have a number of choices as to how to take the money. Which choice yields a greater present value?
$83,000 (lump sum) 6 years from now using a 5% discount rate
$82,000 (lump sum) 6 years from now using an 6% discount rate
$47,000 (lump sum) now
$7,000 a year at the end of each of the next 4 years using a 5% discount rate
Select - Option - (A) ....... $83,000... View the full answer