Payment plan implied rate of time preference

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You win a lottery and are offered the lump sum payment of 750,000 now or the right to receive 200,000 per year for the next five years. What is the lottery payment plan implied rate of time preference (approximation is ok)? What is your implied rate of time preference, if you decide to take the lump sum versus the annuity? How would your expectations of future inflation/deflation effect your decision on choosing lump sum versus annuity? Show table of annuity payment calculations

Reference no: EM131277455

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