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What is the NPV of a lottery ticket that costs $1, has a 1 in 13 million chance of winning, and pays $11 million of
What is the NPV of a lottery ticket that costs $1, has a 1 in 13 million chance of winning, and pays $11 million of taxable income if you win? Assume your income tax rate is 32% and the payoff happens immediately. Give your answer to the nearest penny.
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
20th Edition
1609303164, 978-1609303167
