Which would option is the most valuable

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Question - Your roommate bought you a lottery ticket before you went home for Thanksgiving. You come back to school and receive an email telling you that you have a winning ticket. You are given three choices - the choices are 1) a lump sum payment today of $120,000, 2) $240,000 twelve years from now, or 3) twelve annual payments of $14,000 beginning today. If the interest rate is 6%, which would option is the most valuable?

Reference no: EM133132753

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