When David Palmisano won the Powerball, he could choose between getting annual installments or taking a lump sum. An economist suggested that David think about

Question

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The economist suggested that David think about the present value of an income stream. This is because if David were to choose the annual installments, he would receive a certain amount of money each year, but the value of that money may decrease over time due to inflation. On the other hand, if he were to take the lump sum, he could invest the money and potentially earn a higher return. By calculating the present value of the income stream, David would be able to compare the two options and make an informed decision.

When David Palmisano Won the Powerball, He Could Choose Between