You just won $20 000 000 in the power ball of the Texas lottery. They lottery commission has asked you to chose between the following two options for your payout. Get paid $4 000 000 today and 4 000 000 per year at the end of the next four years or take $16 000 000 today. If your investment opportunity cost is 12% which alternative would you chose? What about if your investment opportunity cost were 15%?
You just won $20 000 000 in the power ball of the Texas lottery.
by | Sep 6, 2025 | Statistics
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