What would the cash option payout


Present Value.Winners of the Georgia Lotto drawing are given the choice of receiving the winning amount divided equally over 21 years or as a? lump-sum cash option amount. The cash option amount is determined by discounting the annual winning payment at 5?% over 21 years. This week the lottery is worth ?$9 million to a single winner. What would the cash option payout? be?

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Financial Management: What would the cash option payout
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