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After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well-known magazine su
Posted: Tue Nov 16, 2021 9:26 am
by answerhappygod
- After Hearing A Knock At Your Front Door You Are Surprised To See The Prize Patrol From A Large Well Known Magazine Su 1 (35.15 KiB) Viewed 54 times
After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well-known magazine subscription
company. It has arrived with the good news that you are the big winner, having won $24 million. You have three options. (a) Receive $1.2 million per year for the next 20 years. (b) Have $9 million today, (c) Have $3 million today and receive $900,000 for each of the next 20 years. Your financial adviser tells you that it is reasonable to expect to earn 13 percent on Investments. Required: 1. Calculate the present value of each option. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answer to the nearest whole dollar. Enter your answers in dollars, not in millions.) Present Value Option A Option B Optionc 2. Determine which option you prefer. Option A O Option B Option