Gabrielle just won $2.7 million in the state lottery. She is given the option of receiving a of $1,200,000 now, or she can elect to receive $90,000 at the end of each of the next 30 years. If Gabrielle can earn 5% annually on her investments, which option should she take? If Gabrielle takes the prize as an annuity, the present value of the 30-year ordinary annuity is? Can you do it in an excel format?
Gabrielle just won $2.7 million in the state lottery. She is given the option of receiving a of $1,200,000 now, or she can elect to receive $90,000 at the end of each of the next 30 years. If Gabrielle can earn 5% annually on her investments, which option should she take? If Gabrielle takes the prize as an annuity, the present value of the 30-year ordinary annuity is? Can you do it in an excel format?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.20MCE
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Gabrielle just won
$2.7
million in the state lottery. She is given the option of receiving a of
$1,200,000
now, or she can elect to receive
$90,000
at the end of each of the next
30
years. If Gabrielle can earn
5%
annually on her investments, which option should she take?
If Gabrielle takes the prize as an
30-year
ordinary annuity is?
Can you do it in an excel format?
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