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Home Q & A Board Other Fields Homework Help Business Management
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stranahan stranahan
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7 years ago
After winning the lottery, you state that you are indifferent between receiving twenty $500,000 end-of-the-year payments (first payment one year from today), or a lump sum of $5,734,961 today. What interest rate are you using in your decision-making process such that you are indifferent between the two choices?
A) 5.00%
B) 8.00%
C) 6.00%
D) 7.00%
Textbook 
Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
Author:
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crackerspoppycrackerspoppy
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7 years ago
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stranahan Author
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#2
7 years ago
Thank you very much for this. It's really helpful.
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