You are the winner of a sweepstakes and given a choice of a


You are the winner of a sweepstakes and given a choice of a one-time payment of $1,000,000 or a guaranteed $80,000 per year for 20 years. Assume that you will collect all 20 years regardless of health condition. You can expect the value of money to be 5%. Based on present worth analysis, which option should you select to maximize the payout?

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Civil Engineering: You are the winner of a sweepstakes and given a choice of a
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