Question: Levi just won a $ 1 1 8 , 0 0 0 , 0 0 0 lottery in Alabama. Instead of receiving a lump sum,

Levi just won a $118,000,000 lottery in Alabama. Instead of receiving a lump sum, he
found that he would receive $9,375,000 annually (end of year) for 16 years. Levi is 75
years old and wants his money now. He has been offered $48,878,000 to sell his
ticket. What rate of return is the buyer expecting to make if Levi accepts the offer?
Levi just won a $118,000,000 lottery in Alabama. Instead of receiving

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