Assume that you are a plaintiff and have won a structured ...

[Lobcity]

Assume that you are a plaintiff and have won a structured settlement from a lawsuit that entitles you to 1 million each year over the next ten years.
 
  An attorney from the defense team approaches you afterward and offers you 6 million in exchange for your settlement. How would you go about evaluating whether this is a good deal for you or not?

Question 2

________ is defined as a market outcome in which the marginal benefit to consumers of the last unit produced is equal to the marginal cost of production, and in which the sum of consumer surplus and producer surplus is at a maximum.
 
  A) Economic efficiency B) Consumer efficiency
  C) Deadweight efficiency D) Producer efficiency

[chloejackso]

Answer to Question 1

You would first have to determine what the present value of each 1 million installment is worth by figuring out what rate of return you could reasonable expected to earn. This becomes your discount rate. Once you have calculated the present value of each of these 1 million installments over the next ten years you simply add them up. If they sum to less than 6 million then you should take the cash payment. If not then you should stay with your structured settlement.

Answer to Question 2

A

[Lobcity]

Thanks for the timely response, appreciate it

[coreycathey]

Wow, this really help