Lottery Winnings

The $19.8 million lottery payment that you just won actually pays $1.1 million per year for 18 years. If the discount rate is 15.60% and the first payment comes in 1 year.

a.	What is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Present value

$ million

b.	What is the present value of the winnings, if the first payment comes immediately? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Present value

$ million