Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You win a lottery and are told you won $30,000,000. You actually won $1,000,000 every year for the next 30 years. If the first payment
You win a lottery and are told you won $30,000,000. You actually won $1,000,000 every year for the next 30 years. If the first payment were to be made today and your required rate of return is 11% (effective annual rate), what would you accept today (in dollars) in exchange for all those 30 payments? (Round your answer to three decimal places. For example, 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234. Only type in the number. Do not use $ sign.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started