October 9, 2015

Homework Help: MBA Finance

Posted by Anonymous on Sunday, July 31, 2011 at 6:20pm.

Sally has won the grand prize in a lottery and must choose between the following three options:

A. Receive a lump sum payment of $10,000,000

B. Receive annual end of year payments $2,000,000 for the next 8 years:

C. Receive annual end of the year payments of $1,500,000 for the next 20 years:

Which option should Sally chose based on annual investment of rate of 6%?

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