Alex anderson recently won lottery

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Reference no: EM131356455

Alex Anderson recently won a lottery and has the option of receiving one of the following three prizes:

(1) $50,000 cash immediately

(2) $20,000 cash immediately and a five-period annuity of $8,000 beginning one year from today

(3) A five-period annuity of $13,000 beginning one year from today

Assuming an interest rate of 6%, which option should Alex choose?

Reference no: EM131356455

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