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Congratulations, you won $2,000,000 in the lottery! The payout is $100,000 a year for 20 years, beginning today. You are approached by LottoNow, a firm
Congratulations, you won $2,000,000 in the lottery! The payout is $100,000 a year for 20 years, beginning today. You are approached by LottoNow, a firm that buys the rights to future payouts. If your relevant discount rate 6%, what is the minimum amount (to the nearest dollar) you would accept to trade your rights to the lottery payments (assuming you haven't received any payments yet)?
A_ $987,261
B. $1,146,992
C. $1,215,812
D. $2,000,000
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