You have just won the lottery. You will receive $4,500,000 today, and then receive 40 payments of
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You have just won the lottery. You will receive $4,500,000 today, and then receive 40 payments of $1,600,000. These payments will start one year from now and will be paid every six months. A representative from Greenleaf Investments has offered to purchase all the payments from you for $30 million. If the appropriate interest rate is an APR of 9 percent compounded daily, should you take the offer? Assume there are 12 months in a year, each with 30 days.
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Related Book For
Corporate Finance
ISBN: 978-0077861759
11th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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