B C D E F G H NA 1 2 You've won the lottery! You will be paid $1 million per year starting now with 10 additional annual $1 mm payments. If r=5%, what is the PV of your winnings? The lottery commission offers you an option to take $1,000,000 now and $500,000 per year for 36 additional annual payments. Should you accept? Does your answer change if you are 70 years old with no heirs? How is your answer affected if you can sell the "bonds, i.e. the contracted payments? 3 4 5 6 7 8 9 10 11 12 13 14 15 16 PMT NPER FV R PV