Question
The $50 million lottery payment that you just won actually pays $5 million per year for 10 years. (a) If the discount rate is 10%
The $50 million lottery payment that you just won actually pays $5 million per year for 10 years.
(a) If the discount rate is 10% and the first payment comes in 1 year, what is the present value of the earnings?
(b) What if the first payment comes immediately?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
8th Edition
1264098723, 978-1264098729
