Question
John won a $45 million lottery today. The payout is the following: John gets $1.5 million today and $1.5 million each year for the next
John won a $45 million lottery today. The payout is the following: John gets $1.5 million today and $1.5 million each year for the next 29 years. How much money worth today for the lottery assuming John's federal tax rate is 39.6%, state tax is 8.5% and his annual discount rate is 12%?
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Survey Of Economics, Principles, Applications, And Tools
Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez
5th Edition
0132556073, 978-0132556071
