Homework answers / question archive / Following significant losses at a casino, a high roller is offered the following payment alternatives

Following significant losses at a casino, a high roller is offered the following payment alternatives

Finance

Share With

Following significant losses at a casino, a high roller is offered the following payment alternatives. Assuming an interest rate of 10% p.a., which alternative should the high roller choose? $23,000 at the end of next year with the cash flow growing at 8% p.a. until the end of year 5. O $27,000 per annum at the end of each year for the next 5 years. $60,000 at the end of year 2 and $90,000 at the end of year 5. $160.000 at the end of year 5.