Calculating Present Values You just won the TVM Lottery. You will receive $1 million today plus another
Question:
Calculating Present Values You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $400,000 per year. Thus, in one year, you receive $1.4 million. In two years you get $1.8 million, and so on. If the appropriate, interest rate is 9 percent, what is the present value of your winnings?
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Step by Step Answer:
To solve this problem we simply need to find the PV of each lump sum and add the...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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