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Author Question: It ALWAYS makes more sense financially to take the lump sum payout from winning a lottery than ... (Read 68 times)

nevelica

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It ALWAYS makes more sense financially to take the lump sum payout from winning a lottery than taking the annual cash flows.
 
  Indicate whether the statement is true or false.

Question 2

If we discount the annual payments from winning the lottery at 10, the corresponding present value is greater than if we discount the annual payments at 12.
 
  Indicate whether the statement is true or false.



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orangecrush

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Answer to Question 1

Answer: FALSE
Explanation: It depends upon the interest rate used to discount the future cash flows.

Answer to Question 2

Answer: TRUE




nevelica

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review


cdmart10

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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