An online lottery firm just issued a new ticket that will pay winners $20,000 per year forever. Payments will be made at the end of each year. However, due to some technical reasons, the first payment will be received after three years. If the discount rate is 5%, what is the present value of this lottery?

Answer rating: 100% (QA)

To calculate the present value of the perpetuity one can use the formula PV ... View the full answer