To claim that a lottery winner who is to receive $1 million per year for twenty years haswon $20 million ignores the process ofA) face value.B) par value.C) deflation.D) discounting the future.

50% chanceLoss of 25 $50% chanceWin of X $ X should be at least          $ to make the lottery acceptable.

Suppose you win $10 million in a lottery. You have a choice of how you will receive your winnings. The first choice is to receive a certain lump sum today. The second choice is to receive a certain amount at the end of five years. How will you evaluate your choices to make your decision?

Imagine you are offered the Lotteries below. Please indicate the maximum amount you are willing to pay for the lottery.Question A4bi. Lottery 1.10% chanceWin of 10 $90% chanceWin of 100 $ I am willing to pay at most                                              $ to play the lottery.

60% chanceLoss of 80 $40% chanceNo loss, no win I am willing to pay at most                                              $ to avoid the lottery.

You are considering a lottery prize that will pay you ₹10,000 per year for the next 15 years. If the discount rate is 5%, what is the present value of this annuity?