0-21 Jan
lottery in Missouri. No
$44 million lump-sun
the last deposit
HIU Holds the winning ticket for the $87 mi
Missouri. Now he needs to decide which alternative to ch
million lump-sum payment today or (2) a payment of $2.9 mi
The first payment will be made today. If Jack's oppe
5 percent, which alternative should he che
der the decision you might have to make if you won a state
million. Which would you choose: a lump-sum payment of
r a payment of $3.5 million each year for the next 30 ye
9-22 Consider th
$105 million. Which u
today or a payment of $3.5 m
should you choose?
If your opportunity cost is 6 percent, which alternative sho
At what opportunity cost would you be indifferent betwee
h
alternatives?
9-23 Suppose that you deposit $
ose that you deposit $1,000 into a savings account that
If the bank compounds interest annually, how much will
account in four years?