Suppose That You Have a Winning Lottery Ticket for $100,000

question 24

Essay

Suppose that you have a winning lottery ticket for $100,000.The State of California doesn't pay this amount up front - this is the amount you will receive over time.The State offers you two options.The first pays you $80,000 up front and that will be the entire amount.The second pays you winnings over a three year period.The last option pays you a large payment today with small payments in the future.The payment options are detailed in the table below:

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Definitions:

AVE

Stands for Advertising Value Equivalency, a metric used in public relations to measure the benefit of media coverage by equating it to the cost of equivalent paid advertising space.

Manufacturing Defect

A flaw or imperfection in a product that deviates from its intended design, which can affect its functionality or safety.

PR Team

A group of professionals specializing in public relations within an organization, responsible for managing the public image and communications.

Framing

The process of constructing and presenting information or issues in a specific way that influences how they are perceived and interpreted.