1 . Briefly discuss the concept of business/financial valuation along with its importance in financial decision-making. 2....
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Question:
1 . Briefly discuss the concept of "business/financial valuation" along with its importance in financial decision-making.
2. The state lottery claims that its grand prize is $1 million. The lucky winner will receive $50,000 upon presentation of the winning ticket plus $50,000 at the end of each year for the next 19 years.
a-Why isn't this really a million-dollar prize?
b-What would it actually be worth in dollars to you?
c-What would the twenty yearly payments need to be for the present value of the lottery to be $1 million? Hint: The first step is to determine what type of an annuity the lottery represents.
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