You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments

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You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $600,000 per year. Thus, in one year, you receive $1.6 million. In two years, you get $2.2 million, and so on. If the appropriate interest rate is 7 percent, what is the present value of your winnings?

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Fundamentals of corporate finance

ISBN: 978-0078034633

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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