you just won the power ball lottery worth 340,000,000. upon Reading the fine print you...
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Finance
you just won the power ball lottery worth 340,000,000. upon Reading the fine print you learn. that you have two options:
Option A: take the cash value of 175.5 million today before taxes;
:Option B: the winner is guaranteed to receive 30 graduated payments over 29 pears; the first payment is made today, these payments will increase by 5% per year until the final payment. the first payment. received today, equals the jackpot divided by 30.
Assuming a required rat of return of 4%, calculate the present value of Option B?(growing annuity)
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