Question
You have just won the lottery and will receive $650,000 in one year. You will receive payments for 29 years, which will increase 3 percent
You have just won the lottery and will receive $650,000 in one year. You will receive payments for 29 years, which will increase 3 percent per year. The appropriate discount rate is 10 percent.
Required:
What is the present value of your winnings?
$7,590,011
$53,220,568
$53,220,568
$40,976
$7,906,261
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
