You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments
Question:
You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $500,000 per year. Thus, in one year, you receive $1.5 million. In two years you get $2 million, and so on. If the appropriate interest rate is 9 percent, what is the present value of your winnings?
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Given data First payment 1000000 Annual increase 500000 Discount rate 9 ...View the full answer
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Related Book For 
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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