The $40 million lottery payment that you have just won actually pays $2 million per year for
Question:
The $40 million lottery payment that you have just won actually pays $2 million per year for 20 years. The interest rate is 8%.
a. If the first payment comes in I year, what is the present value of the winnings?
b. What is the present value if the first payment comes immediately?
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a The present value of the 2 million 20year ...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Question Posted:
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