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problem: You have just won the Publishers Corporation Sweepstakes. You have been offered a lump sum of USD 1,000,000, or a lifetime [end-of-year] annuity of USD 100,000 each year. If you expect to live for twenty years & can earn an annual interest rate of fifteen percent on your investments, which alternative should you select [ignoring tax consequences]?

[A] Give it to your favorite Professor.

[B] Donate it to FSC parking facilities.

[C] Take the million dollars

[D] Take the annuity

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M916203

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