Which of the payment options should Jane choose

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Problem - Comparison of Alternatives - Jane Bauer has won the lottery and has the following four options for receiving her winnings:

1. Receive $100,000 at the beginning of the current year

2. Receive $108,000 at the end of the year

3. Receive $20,000 at the end of each year for eight years

4. Receive $10,000 at the end of each year for 30 years

Jane can invest her winnings at an interest rate of 8% compounded annually at a major bank. Which of the payment options should Jane choose?

Reference no: EM132865680

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