Question
You are planning to buy a lottery ticket for the $226,000,000 jackpot. If you have (Option A). the cash option of receiving $154,300,000 today or
You are planning to buy a lottery ticket for the $226,000,000 jackpot. If you have (Option A). the cash option of receiving $154,300,000 today or you can opt to choose (Option B). the 30 payments of $6,533,333.
If, average inflation rate is 3%, what is the present value of OPTION B (cash flow option)? (Please use two decimals).
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
17th Edition
0357714482, 9780357714485
