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Which option should take from strict economic point of view

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Gabrielle has just won $2.5 million in the state lottery. She is given the option of receiving a total of $1.3 million now or she can elect to be paid $100 000 at the end of each of the next 25 years.

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Problem 1: If Gabrielle can earn 5% annually on her investments, from a strict economic point of view which option should she take.

Reference no: EM132642108

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