You have won the lottery. You will receive $5 million today, and then receive 40 payments of
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You have won the lottery. You will receive $5 million today, and then receive 40 payments of $2.1 million. These payments will start one year from now and will be paid every six months. A representative from Greenleaf Investments has offered to purchase all the payments from you for $50 million. If the appropriate discount rate is an APR of 6 percent compounded daily, should you take the offer? Assume there are 12 months in a year, each with 30 days.
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Concerning taking the offer I can say that you are right because you have won the lottery What is m...View the full answer
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Related Book For
Corporate Finance
ISBN: 9781260772388
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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