You just won the $44 million lottery. You will receive $2 million a year for the...
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You just won the $44 million lottery. You will receive $2 million a year for the next 17 years plus an additional payment of $10 million at the end of 17 years. The interest rate is 9 percent. How much is your lottery prize worth today? (Enter your answer as a positive number rounded to 2 decimal places.) You just won the $44 million lottery. You will receive $2 million a year for the next 17 years plus an additional payment of $10 million at the end of 17 years. The interest rate is 9 percent. How much is your lottery prize worth today? (Enter your answer as a positive number rounded to 2 decimal places.)
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To calculate the present value of the lottery prize we need to discount each cash flow to its presen... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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