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