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Elementary,Middle School,High School,College,University,PHD
Teaching Since: | Apr 2017 |
Last Sign in: | 328 Weeks Ago |
Questions Answered: | 3232 |
Tutorials Posted: | 3232 |
MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Wang Ming just won the American Powerball (lottery) and she must choose among three award options. She can elect to receive a lump sum today of $61 million, to receive 10 end-of-year payments of $9.5 million, or to receive 30 end-of-year payments of $5.5 million. (20 marks)
If she thinks she can earn 7% annually, which should she choose? (5 marks)
If she expects to earn 8% anuually, which is he best choice? (5 marks)
If she expects to earn 9% annually, which option would you recommend? (5 marks)
Explain how interest rates influence the optimal choice. (5 marks)
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