The $45.0 million lottery payment that you have just won actually pays $3.0 million per year for

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The $45.0 million lottery payment that you have just won actually pays $3.0 million per year for 15 years. The interest rate is 9%.

a. If the first payment comes in 1 year, what is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places.)

b. What is the present value if the first payment comes immediately?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Posted Date: Mar 05, 2024 11:44 PM

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The $45.0 million lottery payment that you have just won actually pays $3.0 million per year for

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a To calculate the present value of the winnings when the first payment comes in 1 year we can use t... View the full answer

Fundamentals of Corporate Finance

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