Question
The $75.4 million lottery payment that you just won actually pays $2.9 million per year for 26 years. If the discount rate is 12.90% and
| The $75.4 million lottery payment that you just won actually pays $2.9 million per year for 26 years. If the discount rate is 12.90% 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 |
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Analysis For Financial Management
Authors: Robert C. Higgins
10th International Edition
007108648X, 9780071086486
