Alex anderson recently won a lottery and has the option of


Alex Anderson recently won a lottery and has the option of receiving one of the following three prizes:

(1)   $50,000 cash immediately

(2)   $20,000 cash immediately and a five-period annuity of $8,000 beginning one year from today

(3)   A five-period annuity of $13,000 beginning one year from today

 

Assuming an interest rate of 6%, which option should Alex choose?

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Alex anderson recently won a lottery and has the option of
Reference No:- TGS02156145

Expected delivery within 24 Hours