Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment op

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment op

Post by answerhappygod »

Mary Alice Just Won The Lottery And Is Trying To Decide Between The Options Of Receiving The Annual Cash Flow Payment Op 1
Mary Alice Just Won The Lottery And Is Trying To Decide Between The Options Of Receiving The Annual Cash Flow Payment Op 1 (49.58 KiB) Viewed 11 times
Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $300,000 per year for 25 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 5% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $4,439,592 $4,739,592 $4,228,182 $7,500,000
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”