[Solved] Mary Alice Just Won the Lottery and Is Trying to Decide

Question 51
Multiple Choice

Mary Alice just won the lottery and is trying to decide between the annual cash flow payment option of $250,000 per year for 25 years beginning today and the lump-sum option.Mary Alice can earn 6% investing this money.At what lump-sum payment amount would she be indifferent between the two alternatives?

A)$6,250,000.
B)$3,195,840.
C)$3,637,590.
D)$3,387,590.

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