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Calculate the present value of both the options

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Problem - You have just won the state lottery and have two choices for collecting your winnings. You can collect $103,000 today or receive $20,400 at the end of each year for the next seven years. A financial analyst has told you that you can earn 9% on your investments.

Required -

1. Calculate the present value of both the options.

2. Which alternative should you select?

Reference no: EM132745368

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