Best option by applying present value techniques

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Reference no: EM132061382

FOLLOW UP PRESENT VALUE PROBLEM

You have won the lottery after purchasing a $5 lottery ticket. You have the following options:

Option 1: $1,000,000 Now

Option 2: $150,000 at the end of each year for 10 years ( $1,500,0000 total)

Option 3: $2,000,000 at the end of 10 years.

Assess which of these is the best option by applying present value techniques.

Reference no: EM132061382

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