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Jorge Hildalgo was awarded $5,000,000 in a legal settlement. The company obligated by the settlement...

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Accounting

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Jorge Hildalgo was awarded $5,000,000 in a legal settlement. The company obligated by the settlement has given Jason two options. He has the option of receiving an annuity payment of $16,666.67 per month paid at the beginning of the month for 25 years. Or he has the option of taking a lump sum settlement today. The interest rate used to calculate the lump sum is 4.5%. Calculate the present value of the lump sum option. Multiple Choice $1,626.681.47 $2,998,505.96 O $3,009,750.36 O $3,870,3640.00

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