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Economic Analysis For Technologists-Discussion

Economic Analysis For Technologists-Discussion

Q 1. Would you take the one-time payout (which is always less than the face value of the publicized winnings) or would you take an annuity payout (which is usually the face value of the winnings, but paid out in even amounts over time)? Justify and explain your answer using the tools you are learning in this module. What did the person in your research do? 2. What portion of the one-time payout would you invest, how would you invest it, and what would be your expected returns over a 10 year period, and over a 20 year period? Or, if you took an annuity payout, what portion would you invest, how would you invest it, and what would be your expected returns over a 10 year period, and over a 20 year period? Again, justify and explain your answer using the tools you are learning in this module.

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1. A lottery organization can pay its winner either in one-time payout or in annuity payout. The difference between in these two methods is in the one-time payout, the winner would get the prize money at a time and in the annuity-payout, the winner will receive the money in the form of the annual payment for a series of years. One of the greatest advantages of the lump-sum payout is that in this method the winner will get the complete access of the total amount at that very time.