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winners of the Georgia lotto drawing are given the choice of receiving the winning amount divided equally over 22 years or as a lump-sum cash
winners of the Georgia lotto drawing are given the choice of receiving the winning amount divided equally over 22 years or as a lump-sum cash option amount. The cash option amount is determined by discounting the annual winning payment at 8% over 22years. This week the lottery is worth $2million to a single winner. What would the cash option payment be?
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Valuation Workbook
Authors: Tim Koller, Marc Goedhart, David Wessels, Jeffrey P. Lessard, McKinsey & Company
4th Edition
0471702161, 978-0471702160
