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Consider the following scenarios: A lump sum of $4,000,000 today b. A lump sum of $5,000,000 in 10 years c. An annual annuity of $500,000 over the...

Consider the following scenarios:

a.     A lump sum of $4,000,000 today

b.    A lump sum of $5,000,000 in 10 years

c.     An annual annuity of $500,000 over the next 10 years.

If the appropriate interest rate is 6.00 percent, which option should you choose?  

Top Answer

Answer You should choose Option a i.e A... View the full answer

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