Business, 06.05.2020 03:21 gabe2075

Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $68,000 cash immediately, (2) $23,000 cash immediately and a six-period annuity of $7,900 beginning one year from today, or (3) a six-period annuity of $13,700 beginning one year from today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Assuming an interest rate of 6%, determine the present value for the above options. Which option should Alex choose?

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Alex Meir recently won a lottery and has the option of receiving one of the following three prizes:...

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