Question
John won a $75 million lottery today. The payout is the following: John gets $2.5 million today and $2.5 million each year for the next
John won a $75 million lottery today. The payout is the following: John gets $2.5 million today and $2.5 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 10%?
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
