Debbie won the $60 million lottery. She is to receive $1 million a year for the next
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Debbie won the $60 million lottery. She is to receive $1 million a year for the next 50 years beginning one year from now, plus an additional lump sum payment of $10 million after 50 years. The discount rate is 10 percent. How much cash would she need to be offered today to tempt her to take a lump-sum cash offer instead, all things equal?
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Debbie needs to be offered a lumpsum ...View the full answer
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