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1. SUPERBALL: You have just won the Superball lottery and are given the following options: i. $1,000,000 in cash today. ii. $8,000 in cash
1. SUPERBALL: You have just won the Superball lottery and are given the following options: i. $1,000,000 in cash today. ii. $8,000 in cash each month starting today and ending after 240 payments. If you believe the effective market rate of interest (EAR) for this opportunity is 7%, with monthly compounding, what is the approximate value gained by taking the best option?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
