35. Spivey just won a lottery! The $10,000,000 jackpot will be paid in 25 annual installments of...
Question:
35. Spivey just won a lottery! The $10,000,000 jackpot will be paid in 25 annual installments of $400,000 each, with the first payment to be paid immediately. Spivey’s opportunity cost of capital (interest rate) is 2% per year.
What is the present equivalent of Spivey’s lottery winnings at the time of the first payment? (4.7)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answered By
Vijesh J
My passion to become a tutor is a lifetime milestone. Being a finance and marketing professional with hands-on experience in wealth management, portfolio management, team handling and actively contributing in promoting the company. Highly talented in managing and educating students in most attractive ways were students get involved. I will always give perfection to my works. Time is the most important for the works and I provide every answer on time without a delay. I will proofread each and every work and will deliver a with more perfection.
5+ Reviews
15+ Question Solved
Related Book For 
Engineering Economy
ISBN: 9781292265001
17th Global Edition
Authors: William G. Sullivan ,Elin M. Wicks ,C. Patrick Koelling
Question Posted:
