@ALAN W, you are so annoyed. I see you are trying to get 4 points every post by saying silly things on many people's poses. You actually don't know any thing about accounting' stuff and I can see you copied the answer from Coco. If I was the one who post this question, I would kick you out of here by deleting this one or report abuse.
@ John, actually it makes a lot of sense.
I get 204,074.47
If you think you can invest at MORE than 7% take the cash now. If you cannot exceed that, take the deferred payment. Ignores income tax consequences.
That made no sense
Suppose you have a winning sweepstakes ticket and you are given the option of accepting $250,000 three years from now or taking the present value of the $250,000 now. The sponsor of the prize uses a 7% discount rate. If you elect to receive the present value of the prize now what amount will you receive now?
