Question
Lorraine Jackson won a lottery. She will have a choice of receiving $25,000 at the end of each year for next 30 years, or a
Lorraine Jackson won a lottery. She will have a choice of receiving $25,000 at the end of each year for next 30 years, or a lump sum today. If she can earn a return of 10 percent on any investment she makes, what is the minimum amount she should be willing to accept today as a lump-sum payment? (Round to the nearest hundred dollars.)
Please show how to solve on a financial calculator
a. $750,000
b. $334,600
c. $212,400
d. $235,700
e. $108,744
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
