he winner of a lottery is awarded $4,000,000 to be paid in annual installments of $200,000 for 20 years. Alternatively, the winner can accept a
he winner of a lottery is awarded $4,000,000 to be paid in annual installments of $200,000 for 20 years. Alternatively, the winner can accept a "cash value" one-time payment of $1,800,000. The winner estimates he can earn 7% annually on the winnings. What is the present value of the installment plan? (Round your answer to two decimal places.)
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Authors: William Brueggeman, Jeffrey Fisher
16th Edition
1259919684, 978-1259919688
