Suppose you have a winning lottery ticket and you are given the option of accepting $2600000 three years from now or taking the present value of the $2600000 now. The sponsor of the prize uses a 5% discount rate. 
If you elect to receive the present value of the prize now, what is the  the amount you will receive?

Answer rating: 100% (QA)

we have to compute present value in this case He... View the full answer