Marcus has won a $9 000 000 state lottery. He can take his prize as...
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Accounting
Marcus has won a $9 000 000 state lottery. He can take his prize as either 15 yearly payments of $600,000 or a lump sum of $5,135,000 . Which is the better option? Assume an interest rate of 8 %.
A.
The present value of the lottery winnings is _______
this is better than the lump sum of $5,135,000
B.The present value of the lottery winnings is ______
;this is worse than the lump sum of $5,135,000
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