How does time value of money principles apply to lottery

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Reference no: EM131950898

A friend just won the lottery and is trying to decide whether to take annual payments of 20 years of $1 million or a lower amount in one lump sum. The lottery is won in NYS, ignore taxing. How will you decide which option to take? Using financial principles, what do you need to know in order to make your decision? How does time value of money principles apply to the lottery?

Reference no: EM131950898

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