Multiple Choice
You have a choice between a lottery lump sum payout of $5,509,253.62 today or a series of twenty annual annuity payments of $500,000 each (first cash flow one year from today) .At what discount rate are you indifferent between the two choices?
A) 4.50%
B) 5.50%
C) 6.50%
D) 7.50%
Correct Answer:
Verified
Correct Answer:
Verified
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