Winners of the Jackson City Lottery prize money of $10 million are paid $1 million per year over a period of ten years.Paid out in this form,this prize is _____
A) worth less than $10 million because the payment is deferred over time.
B) worth more than $10 million because the payment remains constant for the next ten years.
C) worth more than $10 million because the tax burden on the smaller payments is less.
D) worth exactly $10 million.
E) not worth $10 million if the interest rate is positive.
Correct Answer:
Verified
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