Mary has won the iowa lottery and is faced with a tough


Question - Mary has won the Iowa lottery and is faced with a tough choice: whether to take an immediate payment of $2,000,000 (after taxes) or $175,000 right now and another 19 annual payments of the same amount (20 payments in total). She thinks that 7% would be an appropriate interest rate to apply to this calculation. What should Mary do: take the payment right now or wait for the 20 payments?

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Accounting Basics: Mary has won the iowa lottery and is faced with a tough
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