You just won a $20 million lottery. You can choose either receiving $8 million today or $800,000 per year for 25 years. Which time value of money calculation should you use to decide between these two alternatives?
A) Future value of a lump sum
B) Present value of a lump sum
C) Future value of an annuity
D) Present value of an annuity
Correct Answer:
Verified
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B)
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