1. Jenna has recently won the lottery for $900,000. She has the option of receiving...
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Accounting
1. Jenna has recently won the lottery for $900,000. She has the option of receiving a lump-sum check of $600,000 or investing it in a fund that receives an annual year-end check for $50,000 for the next 20 years. Jenna would like to earn 10% on her investments. (Please show work)
End of Period: 20
Present Value of $1: .14864
Present Value of an Annuity of $1: 8.51356
a) What is the amount of the present value of the lump sum?
b) What is the amount of the present value of the annuity?
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