Question
Present Value of an Annuity: On January 1 you win $2,640,000 in the state lottery. The $2,640,000 prize will be paid in equal installments of
Present Value of an Annuity:
On January 1 you win $2,640,000 in the state lottery. The $2,640,000 prize will be paid in equal installments of $330,000 over 8 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.
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Corporate Valuation A Guide For Managers And Investors
Authors: Phillip R. Daves, Michael C. Ehrhardt, Ron E. Shrieves
1st Edition
0324274289, 978-0324274288
