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Which option would earn the higher rate of return for aiden

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Question - Aiden Jackson just found out he will inherit $2,500,000 from his aunt.  He has two options for investing the inheritance. First, he can invest his money today and be paid a lump sum of $5,000,000 10 years from now.  His second option is to invest the money today and receive $400,000 a year for the next 10 years. Ignoring income taxes and assuming the interest rate is constant over the entire investment, which option would earn the higher rate of return for Aiden?

Reference no: EM133173193

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