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Calculate the present value of both the options

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Question - Using Present Value Concepts for Decision Making - You have just won the state lottery and have two choices for collecting your winnings. You can collect $108,000 today or receive points $21,300 at the end of each year for the next seven years. A financial analyst has told you that you can earn 9% on your Investments.

Required -

1. Calculate the present value of both the options.

2. Which alternative should you select?

Reference no: EM133059768

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