Suppose you win a lottery with a 1000000 prize you can


Suppose you win a lottery with a $1,000,000 prize. You can either take the prize as $50,000 per year for each of the next 20 years, or can take a lump sum today of $600,000. Assuming your discount rate is 10%, which option has greater present value?

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Finance Basics: Suppose you win a lottery with a 1000000 prize you can
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