You will buy a lottery ticket. If you win, you have a choice of receiving $995,000 now or three equal end-of-year payments of $400,000. You should take the payments
A)
because $1,200,000 is greater than $995,000.
B)
if you earn 20% or more on your investments.
C)
if you earn 11% or more on your investments.
D)
if you earn less than 10% on your investments.
ANSWER
D
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