You Have Just Won First Division in the State Lottery,and

question 1

Essay

You have just won first division in the State lottery,and have a choice between three alternatives as to how your prize is to be received.You can get $100,000 now,or $10,000 per year in perpetuity,or $50,000 now and $150,000 at the end of 10 years.If the appropriate discount rate is 12% per annum,which option should you choose?

---

Definitions:

Extract More

The process of increasing the quantity taken from resources or datasets, often aiming for higher yields or more information.

Conflict Diamonds

Diamonds mined in a war zone and sold to finance an insurgency, an invading army's war efforts, or a warlord's activity.

Diamonds

Gemstones consisting of a crystalline form of carbon, often used in jewelry for adornment and considered valuable due to their rarity and physical properties.

Mined

The process of extracting minerals, metals, and other geological materials from the earth, typically through the creation of mines.