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Assume that you just won $250 million in the Powerball lottery, and hence the lottery will pay you 25annual payments of $10 million each year
Assume that you just won $250 million in the Powerball lottery, and hence the lottery will pay you 25annual payments of $10 million each year beginning immediately. If the rate of return on securities ofsimilar risk to the lottery earnings (e.g., the rate on 25-year U.S. Treasury bonds) is 3.75 percent, whatis the present value of your winnings?
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