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You have won the lottery! That is just great. But, what have you really won? It is a $20,000,000 lottery, with twenty payments (the first
You have won the lottery! That is just great. But, what have you really won? It is a $20,000,000 lottery, with twenty payments (the first one is provided today) of $1,000,000 each. If the best discount rate for these future cash flows is 7.5%, compounding annually, what is the actual value, including today's payment, of your $20 million lottery? (to the nearest $1,000,000) 0 $8,000,000 0 $9,000,000 0 $10,000,000 O $11,000,000
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