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You have just won money from your lucky lottery ticket! According to the lottery's rules, you will be paid $2,570,000 today, and in the future
You have just won money from your lucky lottery ticket! According to the lottery's rules, you will be paid $2,570,000 today, and in the future you will collect 40 payments in the amount of $1,285,000 each. These payments to you will begin one year from today. You will be receiving them every six months. Someone from Investments R Us has offered you to buy all the payments from you for $25 million right now. You are wondering if you should just accept it or not, but that depends on how much the lottery payments are worth right now! Here is some additional Information on the lottery winnings: The annual rate of return on the lottery payments is 8 percent, compounded daily. Assume 12 months in a year, and 30 days in each month. Calculate the present value of all the cash flow payments from this lottery. (Do not round Intermediate calculations. Round your final answer to 2 decimal places, e.g., 32.16.)
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