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Business, 31.07.2019 00:10 lnr919

A. assume that you just $30 million in the texas lottery, and hence the state will pay you 20 annual payments of $1.5 million at the end of each year. if the rate of return on securities of similar risk to the lottery earning (e. g., the rate on 20-year u. s. treasury bonds) is 5%, what is the present value of your winnings? - option 1: a lump sum payment of $30 million up front - option 2: 20 annual payments of $1.5 million b. considering this, which option should you take? explain your answer.

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