Business, 12.03.2020 06:01 addisonrausch

5. Which lottery payout scheme is better? Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a series of payments over time. If you pick the lump sum payout, you get $2,750 today. If you pick the payments over time payout, you get three payments: $1,000 today, $1,000 one year from today, and $1,000 two years from today.

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5. Which lottery payout scheme is better? Suppose you win a small lottery and have the choice of two...