Multiple Choice
Mary Alice just won the lottery and is trying to decide between the annual cash flow payment option of $250,000 per year for 25 years beginning today and the lump-sum option.Mary Alice can earn 6% investing this money.At what lump-sum payment amount would she be indifferent between the two alternatives?
A) $6,250,000.
B) $3,195,840.
C) $3,637,590.
D) $3,387,590.
Correct Answer:
Verified
Correct Answer:
Verified
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