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The $75 million lottery payment that you just won actually pays $7.5 million per year for 10 years. (a) If the discount rate is 9%
The $75 million lottery payment that you just won actually pays $7.5 million per year for 10 years.
(a) If the discount rate is 9% and the first payment comes in 1 year, what is the present value of the earnings?
(b) What if the first payment comes immediately (annuity due)?
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