Multiple Choice
Suppose you have a winning lottery ticket and you are given the option of accepting $3,000,000 three years from now or taking the present value of the $5,000,000 now.The sponsor of the prize uses a 6% discount rate.If you elect to receive the present value of the prize now, the amount you will receive is
A) $2,518,860.
B) $2,591,520.
C) $2,670,000.
D) $3,000,000.
Correct Answer:
Verified
Correct Answer:
Verified
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