Bill won the lottery. He has the choice of $1,000,000 today or $100,000 paid at...
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Finance
Bill won the lottery. He has the choice of $1,000,000 today or $100,000 paid at the beginning of each of the next 20 years starting immediately (a total of $2 mil!). Disregarding taxes and inflation, what rate of return would give each option the same Present Value?
| A. | 8.19% | |
| B. | 8.92% | |
| C. | 7.2% | |
| D. | 7.75% |
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