With state and multistate lotteries, winners are typically given the choice between a lump sum payment today or a 20 year series of annuities. How should a winner decide which is better?
What will be an ideal response?
The winner should decide by determining the present value of the multiyear annuity payout and comparing it to the lump sum payment. Whichever has the largest present value is the best choice.
Economics
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Nonprofit association that promotes the interests of a particular industry:
a. cooperative b. corporation c. trade association d. limited partnership e. sole proprietorship
Economics
Sunk costs
a. can only be measured in monetary terms b. are opportunity costs c. should influence a person's choice if that person is a marginal decision maker d. lower the efficiency of production e. should not be considered when making economic decisions
Economics