Question
You have just won the lottery jackpot of $10,000,000. The lottery commision has offered you a full payout over 20 equal annual installments with the
You have just won the lottery jackpot of $10,000,000. The lottery commision has offered you a full payout over 20 equal annual installments with the first payment made immediately, or you may opt out for a lump payment of $5,000,000.
A) If your opportunity cost is 10% which choice should you select
B) what is the intrinsic value of the 20 installments?
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
