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(Solved): Topic: Look for the PV of a lump sum or discounting You win a lottery and they offer you a choice o ...



Topic: Look for the PV of a lump sum or discounting You win a lottery and they offer you a choice of a lump sum of $105,000 in 12 years or $47,000 today. a. If money is discounted at 8 percent, which should you choose? b. If money is still discounted at 8 percent, but your choice is between $105,000 in 9 years or $47,000 today, which should you choose? c. What does this exercise tell you about the present value calculation?



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