Question
Suppose you just won the state lottery, and you have a choice between receiving $500,000 today or annual payments of $150,000 each year for 4
Suppose you just won the state lottery, and you have a choice between receiving $500,000 today or annual payments of $150,000 each year for 4 years, with the first payment coming one year from today. What rate of return is built into the cash flow stream? Disregard taxes.
| a. | 7.12% | |
| b. | 7.71% | |
| c. | 8.27% | |
| d. | 8.86% |
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The Structured Credit Handbook
Authors: Arvind Rajan, Glen McDermott, Ratul Roy
1st Edition
0471747491, 978-0471747499
