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Assume that you just won the state lottery. Your prize can be taken either in the...

Assume that you just won the state lottery. Your prize can be taken either in the form of $40,000 at the end of each of the next 25 years or as a single payment of $500,000 paid immediately. If you expect to be able to earn 5% annually on your investments over the next 25 years, which alternative should you take?

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jeff jeffy answered 2 years ago
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