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Author Question: A lottery winner can take $6 million now or be paid $600,000 at the end of each of the next 16 ... (Read 47 times)

Mr.Thesaxman

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on: Jul 9, 2019
A lottery winner can take $6 million now or be paid $600,000 at the end of each of the next 16 years. The winner calculates the internal rate of return (IRR) of taking the money at the end of each year and, estimating that the discount rate across this period will be 6%, decides to take the money at the end of each year. Was her decision correct?
◦ No, because it disagrees with the Net Present Value rule.
◦ Yes, because it agrees with the Net Present Value rule.
◦ Yes, because it agrees with both the Net Present Value rule and the payback rule.
◦ Yes, because it agrees with the payback rule.
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Marked as best answer by Mr.Thesaxman on Jul 9, 2019

asdfghjkl;

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Mr.Thesaxman

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Reply 2 on: Jul 9, 2019
YES! Correct, THANKS for helping me on my review

patma1981

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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