You have just won the state lottery and have two choices for collecting your winnings....
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Accounting
You have just won the state lottery and have two choices for collecting your winnings. You can collect $105,000 today or receive $20,700 at the end of each year for the next seven years. A financial analyst has told you that you can earn 9 percent on your investments.
Required:
Calculate the present value of both the options (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
Which alternative should you select?
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