If you did win $12 million in the New York lotto and you will be paid over a 20-year period- $600,000 a year- or you can get a lump sum payment up front. What is the actual present value of this $12 million? Interest rate is 5%.© BrainMass Inc. brainmass.com October 10, 2019, 1:57 am ad1c9bdddf
(i) Lumpsum Option Present Value = $12 million
(ii) Annuity Option Present ...
The Solution provides the correct option that should be chosen.