Question
27. $ You won the lottery when the jackpot was advertised at $3,000,000 (based on annual payments of $100,000 for 30 years). Your choice
27. $ You won the lottery when the jackpot was advertised at $3,000,000 (based on annual payments of $100,000 for 30 years). Your choice is to take the annual payments for 30 years or take the lump sum payout today which is the present value of the advertised jackpot. The lottery administration uses a 3.5% interest rate. What is the value of the lump sum payout? (Round to nearest dollar)
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
