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Michael won the state lottery and had the option of taking

Michael won the state lottery and had the option of taking his winnings is one of three ways:

a. 175000 cash immediately
b. 25000 cash immediately and six equal installments beginning one year from today with a 3% return
c. Seven equal payments beginning in one year with a 6% return.

Which would be the best option for Michael?

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intermediate accounting
Michael won the state lottery and had the option of taking his winnings is one of three ways:

a. 175,000 cash immediately

Present value today is equal to 175,000.
b. 25,000 cash immediately and six equal installments beginning one year ...

Solution Summary

This solution is comprised of a detailed explanation to answer which would be the best option for Michael.

$2.19