On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in
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On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Appendix A.
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The present value of our winnings PV PMTr 1 11 rn PMT 6250000 r 5 005 n 8 ...View the full answer
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Related Book For
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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