Which option will you choose if you base your decision on


You are considering two lottery payment options: Option A pays $10,000 today and Option B pays $20,000 at the end of ten years. Assume you can earn 6 percent on your savings. Which option will you choose if you base your decision on present values? Which option will you choose if you base your decision on future values?

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Finance Basics: Which option will you choose if you base your decision on
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