Which option would recommend that accept

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Question 1: Mark has just won the grand prize on the Wheel 'n' Deal quiz show. He has a choice between (a) receiving $400,000 immediately and (b) receiving $60,000 per year for eight years plus a lump sum of $150,000 at the end of the eight-year period. If Mark can get a return of 10% on his investments, which option would you recommend that he accept? (Use present value analysis, and show all computations.)

Reference no: EM132516390

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