Solved: Taking a lump sum payment today, Risk Management

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Taking a lump sum payment today

Problem:

Many people, as evidenced by the large payoffs provided for picking 6 out of 53 (or more) numbers, play the lottery. The big choice the winners face: taking a lump sum payment today or an annual payment over 20 years. Is a dollar today worth more than a dollar tomorrow? Why or why not? Which do you prefer, the lump sum or the 20 year payment stream?

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Risk Management: Taking a lump sum payment today

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