How would you answer this case interview question
Had a first round phone interview with a consulting firm. As most first round interviews go, it consisted of mostly fit questions. However, the interviewer threw in one case question, probably just to see how I think on my feet and to make sure I wasn't a complete dumbass.
The interview asked, "If you won the lottery and had the options of taking the winnings in one lump sum or ten equal payments over ten years, what factors would you base you decision on?".
Without getting into too much detail, I said the following (in this order).
- Tax implications
- expected future inflation rates
- expected future interest rates
- personal spending decisions (i.e. blow it all at once, invest it, etc)
Just wondering how you all would answer this question and if you think how I responded was reasonable.