Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
Chocolate_Pie Chocolate_Pie
wrote...
Go to Answer
Posts: 119
Rep: 0 0
A month ago
Lottery A pays $1,000 today and Lottery B pays $1,750 at the end of five years. If the discount rate is 5%, which lottery should you choose?

▸ Lottery B, because it pays $1,750 which is more than $1,000 from Lottery A

▸ Lottery B, because its present value is $1,371 which is more than that of Lottery A

▸ Lottery A, because its future value is $1,276

▸ Either option gives the same value over time.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
Author:
Read 17 times
1 Reply
Replies
Answer verified by a subject expert
TanjaGTanjaG
wrote...
#1
Posts: 139
Rep: 0 0
A month ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Chocolate_Pie Author
wrote...

A month ago
Brilliant ツ
gage
wrote...

Yesterday
This site is awesome
SlimyPencil
wrote...

2 hours ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1206 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 934
  
 647
  
 2599