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Jessica has just won a game organized by her community. As a reward, she needs to choose among three options: (A) She ca...

Jessica has just won a game organized by her community. As a reward, she needs to choose among three options: (A) She can choose to receive a lump-sum today of $55, (B) to receive 10 end-of-year payments of $9, or (C) to receive 30 end-of-year payments of $5. If we assume that she can earn 6% annually, which option should she choose?

Why do we use PV when solving instead of FV?

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Answer #1

oplion ceieve Now opion ucieve al y end fa o y PVA (6, to y / 子360 ht-99 66 CApen) epfion eccive a ya end - y [isx PUAF (Appo

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